Here comes a new wrinkle in the lender misuse of mortgage loan modification process. Home Affordable Mortgage Plan, or HAMP, insist on demonstration of ‘imminent default’ to qualify for a HAMP mortgage modification. But the Act left it to mortgage servicers to decide how to do that. A lender actively encouraged a loan modification, then advised the homeowner to miss a payment or two, then reported the delinquency to the credit bureaus. This caused the consumer’s credit companies to punish the the consumer.
It appears that the lender really offered a forebearance, not a modification. It also appears that they violated their own terms of the trial modification. My research shows this is a little-reported violation by several mortgage servicers.
The home-owner complies with all terms requested by the lender, but they miscommunicate inside their own offices and the owner suffers. The lender assumes no responsibility unless cornered by the media. Meanwhile, time drags on and the suffering gets worse.
Again, if any other party advised missing a payment, they’d be up on legal charges immediately. While it is almost universally true that missed payments get put at the end of the loan term, no professional would dare advise this. Add to the mix that counseling about credit score issues accompanying missed payments is often outdated and innaccurate. With all the miscommunication already abounding in the mortgage modification industry, one can easily imagine that this counseling is not happening.
To be clear; it is NOT necessary to be delinquent on mortgage payments to demonstrate ‘imminent default.’ You just must submit your mortgage modification application as a legal document. No faxea, no FedEx, and no UPS.
In addition to the credit score ramifications, the article barely mentions the other issue involved in a consumer negotiating their own modification; the hours upon hours of time on the phone that this process takes.
Lenders seem to routinely offer a given modification ‘program’ and then rescind the program without punishment by the government. The homeowner is bound by a specious ‘trial modification’ but the lender can change any term at any time, leaving the homwowner without recourse.
The article points out that this month’s modification statistics will certainly suffer as we see several ‘trial modifications’ rescinded.
The most telling and under-emphasized point in this article is that underwriter’s represent the wishes of the mortgage servicer, not the homeowner; and rarely the end mortgage investor. Any reader must get this point crystal-clear in their mind; the mortgage servicer is not on your side. Your personal banker is not going to modify your loan.
Since this past June, the simplest and most effective way to get a mortgage modification or short sale is to get the REST Report. The REST Report uses your bank’s software to calculate the best resolution to your distressed mortgage for you AND your mortgage investor; which by the way is ALWAYS either a mortgage modification or short sale. You completely bypass the treachery of your mortgage servicer.
I am a proud vendor of the REST Report. I also have the proven best hardship letter template anywhere.
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
This YouTube video says it all. Go here: How to Get A Beneficial Loan Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
Read it here.
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Originally posted 2009-08-17 23:55:41. Republished by Blog Post Promoter
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More Mortgage Modification lender Misrepresentation – http://www.mortgage-mod-monster.com/?p=120