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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.


  1. Gravatar for Anonymous

    Yes, this is a big problem. Millions of derelict houses? All those people losing their "biggest asset." The scariest thing is that the Obama administration, Treasury and even the judicial system seem to be complicit in this massive fraud. What's going on in this country? When did it become a long-term economic goal to bankrupt the citizenry? (I'm pretty sure that never turns out well for those in power ...).

  2. Gravatar for jim stevens

    I would like to refinance instead of modifying,but if your note isnt backed by Fannie May or Freddie Mac its impossible if your LTV is thousands of dollars in the red. I tried a modification but did not recieve good results. Our mortgage payment is still high,and the interest rate is 10.25%

  3. Gravatar for Ruy machado

    It is a huge problem. I am a Realtor, and I have several clients, where they were not behind on their mortgage when they tried to talk to the banks, and the only reason they need it a modification was due to increase on their payments, due to escrow shortage, caused by property tax increase. Through the process they have fallen behind do to the increase. Several times have they tried to just speak with the banks, now that they are behind and still waiting on the modifications, to see if they could simply add the late mortgage to the end of their loan, which will allow them to catch up and not have increasing late fees. But all banks say is don’t no.

    So where is the help, it seams like all banks are doing is collecting late fees, not provide any help, just simply getting them in worse situations.

  4. Gravatar for Liz

    I tried to apply for a modification; I sent in all the required paperwork and was asked to submit it again; Also their correspondence has a note on top that states that "this is a collection notice and all attempts will be made to collect a debt." I have never been late on any of my payments. So I have left it alone; not worth all the aggravation just to get a $200 monthly discount on my mortgage. But it is very, very encouraging that the working class continues to pay for the sins of the very wealthy as well as the freeloaders in our midst. I can see our stress increasing as I see no help in sight. Thanks for even touching upon a subject that for so many seems like a foreign object.

  5. Gravatar for Jon Lewis

    Thank you all for your comments. This is a huge problem, and the media is letting it fade away. There is more to this story, and I would like to uncover it. While I agree that homeowners were somewhat irresponsible in taking on more debt than they could handle, the banks and mortgage institutions had applications and debt to equity ratios they were looking at, and they should have been rejecting the applications. Instead, they fed the beast, and now WE are paying for it, not the banks which are in the black.

  6. In Hawaii I have had some inquiries from people who modified their mortgage and then have had bizarre things happen with Bank ofd America, the new lender who took over their mortgage. Are you handling any Bank of America (Country Wide) mortgage cases or do you know any attorney who is handling them? I need a referral.

  7. Gravatar for L Bryan

    THIS IS EXACTLTY WHAT IS GOING ON WITH MY MORTGAGE WITH BANK OF AMERICA! Formally. Countrywide. I was told No modification first, call back. I did 3 mo later. Iwas told had to behind at least 3 mo. Preferably 5 or more! They finally said Trial period...never got pkg. Sent to us! Fax # was always busy or not receiving,when tried to fax. It only lowered pymt by approximately$ 80.00! Still made few pymts. They were posted Not as pymts,but as Miscellaneous amts pd to acct. Started getting letters from attorney,then sale notices. Still not sure of our homes Status! When I call BOA, IGET LEFTON HOLD. OR recording that not in, tocall back. Afraid tocall attorney again! Did. Once...noone ever called me back! We can now make pymts,if they can be lowered from...$1188.00 to around. $850.00 to. $900.00! CAN YOU HELP?

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