Imagine that, your lender ignoring your mortgage modification application

Imagine. This article accuses lenders of not following the mortgage modification guidelines specified in the Home Affordable Mortgage Plan from last March. Really? For the newly frustrated and distressed homeowner who has recently attempted their own mortgage modification, or used the free HUD counselor resources, this might come as a huge shock. Those of us who have been dealing with the treachery of the nation’s largest lenders, we are on the floor in stitches. We’ve seen it for more than two years now.

ProPublica has written extensively about the lender’s reluctance to act in good faith in the mortgage modification business. Articles like these usually use a few individual case accounts to illustrate the situation. They could have used a better example to lead off with. Further into the account it is revealed that the value of the home had been reduced 70 percent. I question the advisability of modifying a mortgage of a home that had reduced value that much. Chances of the property recovering that much value are extremely slim. A short sale would seem in order here.

More to the point however, is that the client was given a trial modification, followed by timely and satisfactory adjusted monthly payments. The permanent mortgage modification was then rejected. In this case, his lender wrongly used the hardship letter against him, blatantly ignoring the specific rules of evaluating a distressed homeowner’s hardship.

Understand this very clearly: a trial modification is not mandatory. It is an excuse for your lender to try any number of methods to find an excuse to foreclose on your home. They will lose paperwork, not return phone calls, and generally avoid dealing with you, the distressed homeowner. They will avoid communicating with their very own in-house foreclosure department and see if they can foreclose at the same time they’re yanking your chain. They will take your modified payment as a stop-gap to gain a little more money and then foreclose on you, then to say, “Oops.”

Without the REST Report, you have almost no chance of getting a mortgage modification – certainly not a beneficial one that follows accepted protocol.

Get this: Your mortgage servicer has determined that they will make more money on foreclosing on your home. It’s all money to them. There is absolutely zero human compassion on their part. Diane Thompson of the National Consumer Law Center laughably understates the situation by saying, “There’s a real resistance on the servicers’ part to making permanent modifications.”  Duh! I’d say one percent transition from trial mortgage modification to permanent mortgage modification is resistance.

Very notably, this article verifies that the target of a beneficial and affordable mortgage modification is a new payment of 31 percent of your new monthly income. I have seen no statistics that prove that guideline. I do talk to many distressed homeowners that were granted mortgage modifications nowhere near that percentage. But you can bet the permanent mod was gleefully reported as that stellar one percent.

There are two personal case illustrations in this article. They will assuredly get satisfaction in their mortgage modification applications. Why? Because being featured in the press is one reliable way to get attention. So, if you want to assure your mortgage modifiaction, you have two choices: get a reporter to feature your story in a national publication, or get the REST Report. ProPublica actively solicits your story. Good luck. If instead you want to assure a 100 percent chance of a successful mortgage modification, and getting to the front of the line, call me.

Finally, the story accurately reports the adverse effects of a trial mortgage modification on the distressed homeowner’ credit score. However, they would do the reader a favor by also relating the way to fix the bank’s FICO score treachery. One month after a permanent modification is granted, call Transunion (not Equifax or Experian or any other credit bureau) and dispute your lender’s reporting. Your lender will be forced to more accurately report your trial, and permanent successful mortgage modification.

We have always known that a ‘refreshing’ of supporting documants is not required in a trial mortgage modification, but the hapless distressed mortgage modification applicant does not. Here it is: A US Dept. of Treasury guidance to servicers issued in October, says there is “no requirement” to “refresh” the homeowner’s documentation as long as it was up-to-date when it was originally received. It’s the bank’s fault they took so long in the first place. Again, another excuse to fail. Mail your application certified mail, return receipt requested once – and you’re done.

ProPublica says, sometimes there seems to be no reason at all for a trial period to drag on. Wrong. There’s never an excuse. Without the REST Report, there is no enforcement. That’s the way it is. The instant your mortgage servicer receives the cert mail package, they are not entitled to collect and fees or payments until they deal in good faith with your hardship and application.

The article attributes the magical ‘Net Present Value’ to the US Treasury Dept. guidelines. The NPV is a proprietary calculation to the bank. You’ll never see it. HAMP has a calculator for Net Present Value on it’s web site, but the disclaimer at the bottom of the page makes it clear that the calculator is little more than a parlor game. In order to ensure good faith mortgage modification negotiations, you need the same calculations as the bank. That’s the whole point of the REST Report.

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now

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Originally posted 2010-01-15 22:13:42. Republished by Blog Post Promoter

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