What If Your Bank Refuses To Modify Your Home Loan?
We have Been Told That We Have To Be In Default On Our Mortgage in order to qualify for modification of the loan. Is that right? [Englewood, Colorado]
We have had a number of clients in Colorado who have loans with various banks. They have money problems (who doesn't in this economy?) and asked their banks to modify their loans under the new federal laws -- but the bank is either giving them the run around, or worse, entering into a temporary modification and then going ahead with a foreclosure.
WHAT CAN YOU DO? Loan modifications are controlled by federal law. Unfortunately, the banks are not supporting the President and Congress' efforts to keep American's In Their Homes! The banks do not want to agree to modify loans on reasonable payment terms and lower interest rates, their practice is to instead foreclose the house and wait for the market to rally. DO NOT ACCEPT a bank's statement that no program exists for you. DO NOT DEFAULT. Many bank's are FALSELY advising homeowners that they must DEFAULT in order to modify their loans. Many of the programs require you to be CURRENT ON YOUR LOAN to qualify -- we have seen dozens of cases where the bank FALSELY advises the homeowner to default on the mortgage. Finally, you are not required to use a broker or middle man to get a modification. Anyone charging you money up front to modify a loan is violating federal law. If you are having problems with your bank or modification, get advice from an attorney who understands the new loan modification laws. Neighborhood Law Office™ understands these new laws and can help you. Our promise is clear -- Legal Services At A Price You Can Afford!™