I also author TheForeclosureDetonatorFORUM and TheMortgageCornerFORUM in which I have reported on this "scam" several times.
Our reader's comment is not a rare case. In fact, the vast majority of people attempting to get a mortgage loan modification are having the same experience. The stories are all the same.
1. You must be delinquent to even be considered for a loan modification they are told. So people that are not delinquent but want to take advantage of lower rates are told - by their servicers to stop making payments and that after 90 days of delinquency they can apply. People do that only to find out what our reader says in his commnets.
2. Home owners are told repeatedly to send in the same paperwork they have sent in the past. Always being told that their information was never received or it was lost or even destroyed. they are asked to re send their information time after time. Again, this is not an isolated incident. It is rampant across the board.
3. No one is ever told what the qualifications for a loan modification are and are led to believe that they will qualify. Truth be known, you must have a good credit score which once you become delinquent on your payments you do not. Second, you must have a certain debt to income ratio - meaning you must have enough earnings so that a certain percentage (around 42%) can be used for your housing payments. Third, in order to have a proper debt ratio, you must have a job. Therefore for the millions and millions of homeowners that are unemplooyed, there simply is no hope - yet they are never told this by the servicing company.
4. Many who are in foreclosure are told that their foreclosure actions will be stopped during the loan modification. A bold face lie! The foreclosure process continues and often is finalized before you can get them to agree to having just received your paperwork.
In other words, loan modifications are a SCAM!
Let's hear your story on loan modification.
Mr. President, are you listening? I am sure that someone in the White House is monitoring this site. Let us hear from you as well.
Here is a related story from the Huffington Post:
Record Year For Foreclosures: 2.8 Million Households Threatened In 2009, Up 21 Percent
Your request is being processed...
