Why won’t my lender work with me?
Staying current on loan payments and getting legal help might be smarter alternatives than trying to force your lender into a loan modification.
© Radius Images/Jupiterimages
Question: I would like to have more information about loan modification. I've been struggling for three years trying to negotiate with my bank, but have yet to hear back from them. I have copies of all the letters, emails, and a phone log with names, the times of my calls and other details. Can you please help? — Lili Later
Answer: Dear Lili, I can understand your frustration. Tracking your communications with the bank may be useful if there is an obligation on the lender's part to work with you in your quest for loan modification. Under the government's Home Affordable Modification Program, participation is mandatory for servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac. But other issues surrounding your property may allow the servicer to not let you participate in HAMP.
In communicating with you about your situation, you mentioned that you can't afford the payments and that the loan is held by Fannie Mae and is serviced by another firm.
Article continues below
I also learned that your home was built with defective drywall, which, along with the decline in home prices, has you in a $280,000, 30-year fixed-rate mortgage at 6.125% for a home that is now worth about $90,000. Not only are you upside down in the mortgage, but you've also stopped making your payments after getting frustrated with the bank's unwillingness to work with you to modify the mortgage.
I suggest you meet with a real-estate attorney sooner rather than later to discuss your options. The drywall issue may result in a settlement that will affect the value of your property. It's also possible that remedies available through the Home Affordable Foreclosure Alternatives program would be better for you than trying to force your lender into a loan modification.
- MSN Money: Compare refi rates
I'd lean toward having you get current on your loan payments versus wrecking your credit history because you're frustrated with your situation. But you really need to be working with an attorney on this matter.
There talking about taking people houses and then renting them there house back. I think Most people would be better off just walking away. And renting a cheaper place. I have to drop my rent on an apartment by 10% because of the extra places out there. That is forcing the rental income down.
no one shared with the bank when the home values were going up. I made a fortune in real estate and there was plenty of warning before the bubble burst, only the stupid were still buying.
Husband lost job, I got sick. Our finances went south. We sold everything of any value to try to keep up.
Even my engagement and wedding rings. We were able to keep up the mortgage until April. We tried the mod thing . They gave us a trial of a reduction of $120.00 a month didn't help much at all. Won't approve a Deed in Lieu. Their answer FORECLOSURE, December 19th 2012 (6 days before Christmas). The bank Bof A(everyone's favorite)HA HA
Husband does have a job now, pay not the greatest yet, but will get better. We are going to be foreclosed and bankrupt, but down the road I can hopr for better.
Heard B of A is laying off 16,000. The high ups will still get their big bonuses and overinflated salaries that they DONOT deserve, while the others will maybe end up in the same situation a large group of theis customers are now facing.
ALL YOU PEOPLE ARE STUPID!!!!!!!! NOBODY WANTS TO HELP ANYONE ANYMORE UNLESS THERE IS MONEY INVOLVED.WHAT'S IN IT FOR ME??? THIS WHOLE WORLD REVOLVES AROUND MONEY!!!!!!!! END OF STORY, LET'S GO NO FURTHER.
Borrow money from your parents, Mitt Romney thinks it is that simple !
I believe the government may have intended to start a program that would benefit people to lower their interest rate or getting them current on their mortgages, but I also know from personal experience that the banks try everything they can to prevent you from being approved so they basically can show that they attempted to help according to the law. What the government doesn't know is that the banks hire people to process these loans that know nothing about the process or lending requirements whatsoever, are rude and obnoxious. They intimidate the customer and ask them to provide the same documents over and over again until the customer is so sick of it that they give up the process. All of this is from personal experience.
We also went through a "loan modiication". It took 6 months, and I know how many bank statements, pay stubs and other related information. They also "forced" us to become 60 days late to prove hardship!! After all was said and done, they lowered my rate by a whopping 0.25%. Now I have a black mark on my credit, a headache, and a savings of less than $100 per month, and they tacked on the 60 days to the end of my mortgage!!
FOUR MORE YEARS???? NOT FROM ME!!