There are opportunities right now even when you look at all the actions and law suits and multi-billion dollar settlements that the states and federal regulators are making. Federal regulators are making sluggish progress in their efforts to prod banks to help mortgage borrowers.
He got his mortgage payment dropped $250.00 a month which was great for him until the bank started filing Foreclosure on him saying that he was behind on payments.
So the couple was confused when they started getting collection letters saying they were behind on his payments. When Tate offered to resubmit the paper work, he said, the bank refused and demanded a check for $3,100 to bring his loan current and stop the foreclosure proceeding.
A Bank of America representative said that the Tates didn’t sign on the right dotted lines, and that because of those delays “the normal time frame allocated for a permanent modification had elapsed and the modification was declined.”
“This process could have been done inside of three, maybe six months—it should never have taken a year,” he said. Five years after state and federal officials set out to head off millions of home foreclosures, the Tates aren’t alone in trying to navigate the often inscrutable process of getting a lender to modify their loan.
The settlement was intended to cure a laundry list of lenders’ rogue practices and procedures. They included foreclosing on borrowers who weren’t in default, denying modifications for borrowers who qualified, relying on flawed account information and improperly executed documents, misapplying mortgage payments, overcharging fees, shuffling borrowers from one representative to another, foreclosing on a loan when a modification application was underway, and subjecting homeowners to endless delays and repeated requests to resubmit lost paperwork.