I do not post a great deal of the time because I try to give the homeowner facing foreclosure some guidance or helpful information. However, I opened my usual browser and there was an article by Dan Caplinger for the Motley Fool. Of course I do not know Mr. Caplinger and I had to look up the Motley Fool to find out that it is a "multimedia financial-services company." But his article is yet another example of how the National Media, even the internet browsers will take every opportunity to remind homeowners facing foreclosure that this is all their fault, that they are deadbeats who should pay their bills.
Nevermind that Homeowners facing foreclosure have tried to pay their bill, that the servicer will not accept their payment, returned their payment and added late fees for several months. Now that the servicer is not accepting their payment, their Homeowners insurance has been cancelled and the Servicer will add on forced placed insurance, as well as paying their real estate taxes in advance and increase the escrow amount due.
All of this happened because life happened. A payment was a few days late. This new round of modifications will be just as ineffective as the last several rounds. The Lender will tell the Homeowner that he is eligible for the new streamlined modification, but will still file foreclosure. The Lender will then tell the Homeowner not to worry about the foreclosure complaint or the Court hearing, you really do not need to worry about those minor issues. Once the default judgment is granted and the Sheriff's sale is scheduled, the Homeowner will be told that they did not qualify for one or more reasons. Do not worry though here is cash for keys, a couple hundred dollars, and we will take your home now.
Loan modifications are the way out, but you must hire an attorney to fight the foreclosure action. Not just someone who will keep the matter pending through summary judgment. Many of the loan modifications that my clients have received have come only within the last week before trial or during the appellate process.
Homeowners facing Foreclosure do not be discouraged, hire an attorney and demand a reasonable loan modification.
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