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It is amazing what is going on with people’s mortgages. I cannot tell you how many people have contacted us for help because they have been foreclosed after being told that they were going to be seriously considered for a loan modification. I’ve written about these issues before, but it bears repeating because it is so unbelievable what is going on.

In this economy, many people are struggling. They are losing their jobs, and as a result, they are concerned about their mortgages. So, what do they do? Under the Hope Now Program, people have "hope" that the government has helped them by encouraging mortgage companies to modify loans in their difficult times. After speaking with the mortgage representatives, people begin to have hope, BUT they then start the "process".

What happens during the "process"? Their paperwork is lost. They are ask to re-submit their paperwork on several occasions. They get different representatives each time they call. They are told they are on a trial modification plan. They are sent documents late and told if the paperwork is not back on time that they will be kicked out of the system – they can’t get it back on time because the package was sent late. Finally, they are told, "If you aren’t behind on your note, we cannot modify it, so YOU NEED TO STOP MAKING PAYMENTS FOR THREE MONTHS."

Yes, clients are being told to get behind on their mortgage so it can be modified. What happens then? Do they get a modification? No, THEY GET A FORECLOSURE.

Is this a problem? What do you think? Let us hear from you.

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