I have heard a number of stories related to the loan modification process. The homeowner has to repeatedly provide financial information; the homeowner never hears back from the Bank; a trial modification that was supposed to become permanent after three payments has not been approved after 6,7 or more payments. I have heard the same stories from homeowners, as well as, from attorneys representing homeowners. In fact I have two clients who were treated completely different based upon how involved I was in the process.
In the first situation, the clients did everything on their own. They filled out the application and simply had me review the documents. The Bank offered them a modification that placed all interest, fees, and charges on the end of the loan. The monthly payment was reduced only by requiring a balloon payment at the time of the original maturation date. The attorney did nothing; the clients received little to nothing, except an unacceptable loan modification proposal.
In the second situation, the clients were in a trial modification, but a foreclosure complaint was filed anyhow. Clients were told not to worry the complaint was a mere technicality. I entered an appearance, filed an answer, raised affirmative defenses and filed a counterclaim for quiet title. The clients' permanent modification came through as originally promised without a hitch.
The above is not enough for a clinical case study, but it seems as though Banks provide better service and more meaningful modifications when the homeowner is represented by an attorney who treats the matter as real litigation.
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