Loan Modification Myths and Facts

There are a lot of myths surrounding lenders and servicers as to what they will and will not do during the loan modification process. 

The confusion and inaccurate data that is propagating the internet and the news is based on ill-informed bloggers or journalists who really have no idea what is going on in the loss mitigation arena. This to me is akin to someone who studies baseball and claims to be an expert, but has never caught a ball or swung a bat in their lives. How can anyone take them seriously? How can these same people be relied on by the media as “experts” when they have never even played the game?

I have written on the subject of loan modifications more than anyone in the world, and I have personally been involved in over 300 loan modifications both online and off. Our homeowner’s forum at has provided 138 homeowners with free information that helped them avoid foreclosure.

All my work is fully documented online for the world to see.  Please feel free to Google Moe Bedard and take a look at the work I have done or been involved in. I don’t only do the blog talk; I also walk the blog talk.

The facts are that loan workouts and loan modifications are happening in record numbers and it is the educated homeowner that is getting relief on their mortgage and saving their home.

What I wanted to do with this article is to educate homeowners as well as the press with the facts and myths that seem to surround the ever elusive loan modification.

“Loan Modification Myths and Facts”

Myth: Do you have to be late on your mortgage in order to be eligible for a loan modification?

Fact: No, you do not have to be late, but it helps if you are. In other words, you will get more attention and help on your mortgage from your lender or servicer if you’re late.

I have been involved in many modifications where the borrower was not late. However, these instances are rare and require a tough battle to win. Is it impossible? Hell no!

It takes a person with thick skin and an iron will to do this. It’s not unusual for it to take 3-6 months of calls, faxes, emails, letters etc. to get help before you get relief. I have found that the person that is willing to be the greasy wheel and never give up is usually the first person that gets the attention they deserve.

You can view over 100 success stories in my forum of other homeowners who fought their lender or servicer and won. You can also view the thousands of people still fighting in the “Tell Us Your Story Section” of the forum. Their stories are all documented online in their own words for the world to see and learn exactly what homeowners are up against.

IMPORTANT TIP: One of the most effective tools to cut through the toxic mortgage maze is a mortgage audit or forensic loan document review that can help discover legal violations on your loan, which will help you negotiate your mortgage before you are late.

If your lender or servicer is facing a lawsuit based on legal violations on your mortgage, or they can simply avoid litigation by modifying your loan, guess what they will do? 99% of the time they will cave to your demands and give you a sweet and affordable loan modification (one much better than you could have ever imagined or obtained on your own).

If they don’t assist you with a modification and there are legal violations on your loan, please consult with an attorney right away!

I have seen modifications down to as low as a 2% interest rate using the above methods. Yes, WOW!

Myth: Hope Now and 995-HOPE are here to protect your best interests.

Fact: Yes and no.

I say yes and no because they are here to help but they only go one layer deep in their assistance with struggling homeowners while knowing fully well what is in the 2nd layer. So, why don’t they go the extra mile and get into the legal arena on these toxic loans? For instance, why don’t they review every single borrower’s loan documents for legal violations?

The #1 reason is that these two entities are funded by lenders who don’t want you to go into that 2nd layer and get into all that legal stuff that will bury them in lawsuits. They’d also rather not have the last nail put into their coffin by being added to the infamous imploded lenders list over in Aaron Krowne’s blogging world.

Do they “really” have your best interest at heart? I say a BIG FAT NO!

How can they have your best interest at heart when they are taking money from the very same people who put you in the position you’re in now? In other words, do not buy into their hype and propaganda.

If you feel you might be the victim of predatory lending then call a competent mortgage lawyer. Do not call HOPE NOW for help because you will not get help, let alone hope!

Read my articles, Hope Now Reports Record Loan in April, Moe says “It’s Still Not Enough.”, or Do NOT Call 888-995-HOPE for help! Read on to learn why, and Please call 995 Hope if you want to get screwed by your lender, again!

Myth: Lenders and servicers are offering principle reductions on borrowers whose mortgage balances are in the red and owe more than the home is worth.

Fact: Yes, but this is very rare.

This is usually done when a borrower has a 1st and 2nd mortgage and the 2nd is negotiated down and settled for 10-20 cents on the dollar. The first is less likely to offer a reduction in principle unless they are facing litigation and or there are legal violations on the borrowers loan.

There are many scammers that claim they can do this on a regular basis. Don’t buy into their hype or snake oil because that is all it is.

Think about it. If lenders started writing down mortgage balances to borrowers on a regular basis, then everyone and their mother, brother and sister would know about it and demand the same treatment. They will all be standing in line to have their loan balances whacked in half.

Do you know what that would do to our banking system and the foreclosure crisis? It would crush the remaining banks and the write downs would be gargantuan. The impending flood of litigation initiated by burned investors would engulf Wall Street and drown all the banks in a tsunami second.

I am sure millions of homeowners would just walk from their homes if they didn’t get their principle reduced like the Joneses next door. It’s the old adage, “If you did it for them, then why can’t you do it for me?” Now multiply that by millions and millions of people and you can see why this will not happen anytime soon.

Myth: Lenders and servicers are doing everything they can to assist struggling homeowners.

Fact: That is a crock of crap and total BS!

Please excuse my crap talk, but when I hear BS, I call out the BS talkers at their crap talk game. They are giving the media, our government and the people of this great country nothing but lip service.

They do not have enough man power to help all the wounded homeowners suffering in their mortgage contracts. Tens of thousands of employees have been laid off (the same guys and gals that made these loans), and now all of these millions of loans that these same tens of thousands of people created are going bad. So, there lies the HUGE problem that NO ONE seems to address, EVER! I have made this claim for the last year in several articles and not one journalist in the country has shined a light on this very serious issue that needs to be exposed.

Please read my past article on this subject, Should Lenders be Allowed to Participate in the Mortgage Clean Up Process?,

If you don’t have enough people to help the millions of people that need help, then you are not doing everything you can do to help, right? This is common sense, and if you don’t have that, then I can’t help you there.

In fact, all these Hope Now numbers and MBA stats are just lip service and propaganda.

How long are the American people going to remain in their apathetic states before they stand up against this injustice being played out in every city in our country by lawless lenders and servicers who are dragging us all down with them?

















Posted in Loan Modification News | 97 Comments

97 Responses to “Loan Modification Myths and Facts”

  1. captain petrov says:

    That’s right, Moe. Fight the injustice and expose the lies. The tyrants of the mortgage and banking industries have destroyed the economy of the nation and sickened the economy of the whole world. It’s disgusting how they continue to present themselves as trying to help the consumer when in fact they are just trying to help themselves by maintaining their greed and avarice. Never believe the lies that are presented in the news media. They just perpetuate the situation we find ourselves in by not telling the whole truth to the American people. Keep fighting. Keep fighting!

  2. Moe Bedard says:

    Thanks Captain. Lets continue to spread the word.

  3. [...] carefully. Everything can and will be used against you. Items You Will Need When Applying For a Loan Modification Document income and expenses. Keep all correspondence (even the envelopes) Before negotiating a [...]

  4. [...] on their mortgage payments should contact the bank to inquire whether they may be eligible for a loan modification that could help them keep their [...]

  5. [...] You Will Need When Applying For a Loan Modification  Document income and expenses. Keep all correspondence (even the envelopes) Before negotiating a [...]

  6. [...]  Loan Modification Myths and Facts | Loan Modification & Home Loan News [...]

  7. Mark Advin says:

    Its practically impossible to modify a loan with JPMorgan Chase. If homewoners in trouble file a class action law suit against Chase stated income loans – Chase will have no choice but to modify practically all the loans. Majority of loans were lite doc, no doc or stated income…

  8. luis says:


  9. Deborah says:

    I have a question, can a loan servicer, Saxon, take insurance money and apply it to the balance of a loan? I had an accident on my property, not me, and they withheld the last third of the payout because I am deliquent on my mortgage. When I asked previously if they could do this, the rep said unequivicably no, but they sent me a letter that stated just the opposite. What gives?

  10. R. Johnson says:

    I am in default on my home loan, but when I call my bank for a loan modification i keep getting and extension, will I lose my home with the extension?

  11. Tasha says:

    Hello Everyone,

    I have a loan that is serviced by SPS and I agree it is like pulling teeth to get anyone to work with you. I call and get one person that tells me to do one thing; I do it, only to be told by someone else when I call back that they cannot help me. It is very frustrating and tiring. I just sent a letter to them requesting a loan modification under the Obama-Home Affordable Modification Program. I will keep my thoughts and prayers going up along with crossed fingers that this will help me otherwise me and my family are out on the street. This is a tough company to work with but I am trying……Good luck to all of you!

  12. Boheme says:

    How do you determine legal violations on your loan? Do you have an article that lists some things to look for? This would be great for student loans as well!

  13. jenifer says:

    Friend made a payment to avoid foreclosure of $5470.12 the loan was 3 months behind monthly payment is 537.00 was told the payment brought the loan current as of end of february. Now shes being told the woman she spoke to didnt note the account as current. They say she owes 1300 when monthly payment is 537 and was due march 1. Do you have any suggestions?

  14. Greg says:

    Regarding Saxon. I believe they are the worst service company there is, and that’s saying something. I don’t believe you will get any assistance from them, and I think they will pursue any method possible to apply charges to your loan, whether legal or not. I think it’s just a matter of time before the Attorney General of Texas announces some huge class action lawsuit against those guys like he did with Countrywide. But Saxon couldn’t get itself bought out by a bigger player, so it will probably just crumble. I sure hope so, anyway.

    Good luck with those guys, but I fear the worst for you.

  15. Greg says:

    Does that whole ‘find legal violations and threaten to sue’ angle work? When the owners of the company I work for (attorneys) set out to learn the modification business last year, they partnered with a lawyer who claimed to do a forensic accounting, find errors, then threaten to sue unless they modified the loan. And it didn’t work. And thinking about it, I don’t see how it really could. Do you think Wells Fargo would be afraid of some country lawyer who can’t afford to go to trial? If so, he’d have to charge his clients a fortune for his services sine they’d often include trial fees. No, Wells would wipe the floor with guys like that, run them out of money in no time.

    So far I don’t think the lawyer touting that method has modified any loans for his customers. However, it’s a great marketing tool, and probably much easier to attract clients.

    But I could be wrong and it may work. I’m just skeptical.

  16. Great site. Thanks for the info. I agree 100%. If a homeowner thinks that the lender or bank is going to give them a Loan Modification that has the homeowners best interest at heart they better think again. The lenders and banks have only one thing in mind, there investors and there bottom-line. Using a third-party entity to negoiate a Loan Modification on the homeowners part, really is the best approach.

  17. lori says:


  18. Barb Fry says:

    Could you tell me if Ocwen, Central
    Mortgage, Wachovia, Washington Mutual
    or Bank of America have lawsuits for
    no doc loans or adjustable rate loans.

    Thank you.

  19. Looking for the answer says:

    TYPE IN YOUR LENDERS NAME FOLLOWED BY SCAM. You’ll find people who’ve gotten a modification from your lender WARNING YOU. This is what I found so far…

    1. Their negotiator will charge you upfront fee’s $500 +

    2. Your lates payments and fees will be added to the new loan principle.

    3. They claim they’re taking years off the loan. Where?

    4. They’ll reduce your current payment by maybe $30. a month. But they’ll just add it back in to your escrow account or it’s coming out of your new higher principal loan.

    5. They may say you don’t qualify under the new plan even though you do.

    Check it out:

  20. Marcela Abal says:

    I love this thread because my main concern is that people get educated. The reson we are in this crisis is due to irresponsible lending, and now it is up to us to fix this huge mess. Our crisis of credit could have been avoided, however now that eveything is said and done, we all have to do our part in trying to reverse the damage. I respect Moe Bedard for putting in so much effort to educate consumers. My loan modification company does legitimate loan mods for people in real need. Banks are much too busy and have maybe one or two people in their loss mitigation department, so it is up to the consumer to be proactive.

  21. LUIS ALVAREZ says:

    I am helping a friend who does not speak English to modify his loan. He has a very high interest rate at this moment, and it will become in ahigher one in less than a year from now, he also signed a contract that does not alow him to refinance his mortgage for three year after this period his mortgage will change from fixed to variable.
    tell me if this is a subprime mortgage?


    Luis Alvarez

  22. Malaika (SD) says:

    My husband started a loan modification on one rental property that we own a few months ago. This property is mostly occupied by family (my brother) so obviously we don’t want to just let it go. Then later when our own home was in trouble we tried to get it added to the process but the attorney said no he didn’t feel he could handle any other cases at that point.

    Since we have found another attorney, who seems to be on the level, willing to work out payment arrangements, and claims to have a 95% success rate in restructuring loans through loan modification. He feels we have a chance to save both properties but doesn’t know yet that we already requested a modification on the rental. not sure if we need to tell him or not? I think it’s sad that we’ve had to engage two attorney at this point, without really knowing what will be the outcome on either house.

    The question in my mind now is this. Is it possible that we might actually save our rental property (the house my brother lives in) and lose our primary property? We want help but also want to be ready for the reality of what might really happen.

  23. [...] You Will Need When Applying For a Loan Modification Document income and expenses. Keep all correspondence (even the envelopes) Before negotiating a [...]

  24. Debbie says:

    We are trying to negotiate with Wells Fargo, they bought our loan when we were in the process of working on a reduced principal & interest rate loan with our old lenders now WF will have nothing to do with us. We never missed a payment or were late, I think there may be something funny going on here, the district manager of our old loan company and others have told us our loan should have been red flagged so they knew we were in the middle of a new loan. What now?

  25. mary ann says:

    did the state of indiana just pass a law forbidding loan modifications being handled by afs loan modification agencies from the state of california??

  26. Mike Garcia says:

    Moe Bedard,

    I recently came in contact with a company named “Grander Financial” in Irvine, California. I have checked into the background of this company with the Department of Real
    Estate and BBB; they seem to be authentic. However I am still lost! Today the DRE told me that I should do the Mod myself because these companies will end up doing the same thing that I am capable of doing??
    Based on what I’ve been reading it seems it would be best to have a person who has more experience in this area, perform the modification. I do need to do something pretty soon. Can you help with a suggestion? Are you familiar with Grander Financial?

  27. Pete Bess says:

    does anyone have the phone number to the EXECUTIVE TEAM AT WELLS FARGO thanks

  28. Bill D says:

    Does unemployment income count as income in the Homeowner stability plan

  29. ShawnBullington says:

    I am currently working to mod my loan with Wachovia / Wells Fargo. Unemployment is NOT supposed to be count toward income. When you go for a loan or refi at your bank, they will not give you a loan based on this temporary income. However, the Loan Mitigation dept and 995-HOPE will try to count that as income. They want it which ever way works to their advantage!! You answer will vary depending on who you talk to!

  30. Eugene says:

    Wall Street and Associates is a loan modification scam, falsely guaranteeing results, charging upfront fees, pressure selling at all times, and even claiming an affiliation with the Obama plan.

    Check out their site: to see their nationally televised commercial with Obama on it. These people should be shut down immediately. Here is their info:

    Wall Street and Associates
    16200 Ventura Blvd.
    Encino, CA 91436
    Phone: (818) 999-0333
    Fax: (866) 204-9998

  31. nick says:

    Dear Moe,

    I am new to the finance industry and read your article. I am (when you boil it down) a sales man. Working under the certificates of the broker and the lawyers. We are selling Loan Modification services. I interviewed with another company prior to the one I’m with now and all I can say is BOILER ROOM!

    This one seems to be legitimate though. Everything you blogged is in compliance with what they are saying they can “possibly” do for people. We are charging about 1% of whatever the current principal is, and more if they are late, because that may call for more legal action. I’m out in California, so telling homeowners they need to come up with 1% amounts from anywhere to 3-10K.

    Anyhow my question is, is 1% a fair amount? it seems reasonable to me if you look at the overall picture. I’d sure like to get a correspondence going with you, but I don’t want to take up too much of your blog space. anyways let me know. Thanks!

  32. Iris says:

    Can you get a loan modification if you pay interest only????

  33. Donald says:

    I have filed chapter 7 Bankruptcy, but still maintain my current mortgage payments. I am not behind nor have I been late. My attorney did not advise me to wait until my chapter 7 was approved before applying for a loan modification. I have been granted any discharges as of yet, currently waiting on the trustee of my estate. I received a letter from GMAC Mortgage Company stating that I no longer qualify for a loan modification because I have filed Bankruptcy. My mortgage went from $1400.00 monthly to $2830.00. My mortgage company will no longer speak with me, and states to have my attorney call them. I don’t know what to do at this point and it really looks like I will lose my dream home now. Can I hold my attorney responsible for not properly informing me, because I could have held filing until my Modification trial period (90 days) was up, then filed the papers in court! What to do? Help please

  34. There is so much false information and outdated information, floating around the web that it is difficult to get the story straight anymore about foreclosure and loan modifications. I’m glad someone finally made a post to sort of clear the air…Good job and thanks!

  35. LaLa says:

    My husband and I are considering a loan modification. I am uneasy about it because I do not want to start over with a 30 year mortgage. I want to decrease the interest and number of years on our mortgage. I’d like to maybe refinance for 20 years and get on a bi-weekly program plus try to pay an extra note per year. As I said, I’m ready to get rid of my mortgage. This is the chain on our necks. What are our options?

  36. If you have any questions, feel free to call me. Anytime. I will help anyone learn what the banks are doing currently and what options you may or may not have. No promises, just current situations we are experiencing now. We are D.R.E licensed and HUD approved if that helps some of your concerns. Its always hard to make that call for fear of being screwed over by the same guys who made this situation. There is no obligation and you will not be charged ANYTHING for the consultation. Hang in there and stay positive. talk to you soon.

  37. Robert Samuels says:

    I am in the process now of a loan modification. I am behind on my mortgage. So what do I do if they dont accept a payment from me because I cannot make the full past due amount. Am I protected because my loan modification is in negotiation process?

  38. Moe Bedard says:

    You are never protected 100%. But your chances are much better if an active loan workout is in process.

  39. joe varga says:

    i need somebody in phoenix who has some experience and success in dealing with M&I bank they only offered me a temporary relief which is a drop in a bucket and lawyers want to charge an arm and a leg help-help-help

  40. Alex says:

    I have been trying to get a Loan Modification but Bank of America wont work with me. The rep I spoke to told me there were no programs for me at that time. I think maybe because I’m current on my payments. I’m trying so hard to make my monthly payments of $3000. I have what is called an upside down loan. I have been falling behind on some other bills but an trying really hard not to fall behind on my mortgage. Unfortunately I have had to take out loans on my 401K which is not good but It has gone down to that. Can someone offer some advice. I really need some help.

  41. Paul says:

    I have a home mortgage with Chase Bank, I tried working with them on my own to modify my loan for six months with no luck, then I made the fatal mistake of hiring New Leaf to help me with the process, now they have been sreved with a hault to help people with loan modifications, I’m out almost $6,000 with them, and Chase is going to forclose on my home on 09/09/09. I don’t know what to do now, I am dreading loosing my home, my wife and I have a 22 month old son are going to be out on the street in less than 3 weeks. Does anybody have any advice…..

  42. Janice says:

    The post by Eugene on 6/13/09 regarding Wall Street Associates is accurate. I paid them 3495.00 up-front fee in April. Then we received the package for the Home Affordable Program and they took credit for getting us the offer. Then by chance a field rep called on me today (8/27/09), verifying our receipt of package and if we were taking advantage, which we are. Also, I had left several messages for a return call and emails to Wall St (DC-initals of rep) and no call nor email response. I am sorry I wasn’t aware of this site before cause I’d sitll have my $3495.00 .
    So if you are currently working with this company….get your back or hang up on them!!!!!!!

  43. Janice says:

    The post of 6/13/09 by Eugene regarding Wall Street Associates is true. We paid them a fee of $3495.00 upfront fee in April for assistance. Then we received the Home Affordable package which they took credit in obtaining for us. Then by chance a field rep. stopped by today (8/27/09) verifying our receipt of package and if we were taking advantage of it, which were are. Prior to this I had left several phone messages and sent emails to (DC-initials of Wall St emp) which have not been returned. I’m sorry I wasn’t aware of this site before today then I’d still have my $3495.00. This is to ware others don’t deal with Wall Street Associates!

  44. A general rule of thumb is to never work with a company that charges a hefty upfront fee. As cruel as it is, there are still people who will want to take advantage of you when you are at your lowest point.

  45. We have been modifying home mortgages for 10 years. A few mod results from our firm for August 2009. Contact me for more information.
    1) The first payment is due 9/1 in the amount of $2081.62, saving the client $788.82 a month. The old payment was $2,870.44 a month.
    2) The first payment is due on 9/1 in the amount of $1154.37 vs the old payment of $2586.57 saving the client $1432.20.
    3) Client has a foreclosure sale date for 9/4 and the file was approved for the HAMP program. The first payment of $1673.48 due 9/1 vs the old payment of $ 2698.05, saving the client $1024.57 a month. The lender has suspended the sale date on the home.

  46. pam Zeigler says:

    I have been working with my mortgage company BOA, formall C.W.
    On a modification due to my husbands illness. I am behind 19 months
    they offered me a mod this past Dec to start in Feb I sent the docs back with proof of income. I called and was told by a rep to start my new payment as docs indicated I di, when I went to make next payment I was told that mod was denied. we ent around and around before i found out they claim they did not get proof of income. I later found one rep who saw my docs in their system. they have offered me another deal for $700.00 more a month I cant afford that I sent the docs back unsigned with a letter asking what hap[pened to the former offer. they sent another offer for even more money. I have sent that offer back with another letter. What can I do about the offer that I agreed to and made that payment? They also have places an escrow. when I first asked for help I had no escrow and i also have an adjustable rate
    the first offer was 4.875 % this last was 8.6%. pleas if anyone knows what to do. Help

  47. danny says:

    quick question i filed for my loan modification and they told me my income was to low. i found this company on the web that email you documents well my own documents like bank statements and paycheck stubs to send to the lender he charge me like 350 the documents i got back is look real should i turn this in to the lender to put me at the 31%

  48. Nathan Reynolds says:

    I am former non-commissioned officer in the United States Marines and an Illinois Residential Mortgage Licensee and an FHA approved lender. I am also the owner of a telemarketing company and combined my two offices have spoken with and reviewed credit reports on over eight thousand homeowners throughout Illinois in the last two years alone. Almost 87 % of these homeowners did not meet the qualifications to secure a new mortgage under the current tighter lending guidelines that the banks have enforced.

    For years I have provided loan products to homeowners designed by lenders that I now realize were in the better interest of the lender than the actual homeowner.

    If it were not for Gods Grace I would have gone out of business long ago when this crisis started. As God blessed and sustained my company through these trying times, I made it my mission to help distressed homeowners. I now feel that I have a duty to the community to help as many homeowners as possible navigate the maze to save their home.

    In my efforts to assist I have dedicated multiple resources to provide clarity and direction to distressed homeowners. I have made a tremendous effort to help as many homeowners that my office finds eligible apply for this Great program designed by the Obama administration. The homeowners that my office finds ineligible for traditional refinances are directed to apply for a “Home Affordable Loan Modification” directly with their lender that does not cost them anything. This program designed by the Obama administration offers hope where there otherwise is none. Critics can say what they want about the HARP program bottom line is it is a lifeline for families in need; if it worked – BANKS ARE REFUSING TO PARTICIPATE!

    Bank of America, Wells Fargo, Citi and other Big Banks are actively deceiving qualified distressed homeowners applying for President Obama’s Home Affordable Mortgage modification Plan

    The major problem is the above-mentioned Banks are misleading borrowers into believing they are not eligible. In my efforts to assist these homeowners save their homes I have participated in dozens of 3-way conversations with the homeowner and the bank. These eligible homeowners where offered a different program that was more beneficial to the bank and much less beneficial to the homeowner not in accordance with the guidelines of President Obama’s Plan.

    Bank of America: Requires 2 pay stubs / 2 years tax returns / hardship letter / 2 months banks statements / 4506 / etc. in accordance with the documentation required for consideration to be faxed to a fax machine that will not accept more than 10 pages! They then discard the submission for the program with no notice to the homeowner. In addition when a distressed homeowner who is current on their mortgage calls B of A inquiring about the Home Affordable Modification Plan they are prompted to enter their loan number, B of A system automatically identifies that that are current and transfers them away from the modification department thus never giving them an opportunity to apply.
    Citi: Actually denied an 85-year-old widow of a veteran that spent her last penny of savings and never missed a payment. She is paying a $2,000.00 mortgage payment even though she only received $1,500.00 a month in survivor benefits. She was denied because Citi’s computer model calculated that they stood to loose $63,000.00 by modifying her loan. We contacted a HUD approved credit counselor from HOPE and had a 4-way call with Citi in regards to their unlawful denial in this case. The Citi employee actually emailed us (unauthorized) the screen shot from the software that denied her modification. I have saved this documentation and can provide.
    Wells Fargo: Representative in home retention claims that “Wells Fargo Financial” is not offering plan only “Wells Fargo Home Loans is offering plan” and vice versa when you speak to Wells Fargo Home Loans. Wells Fargo representative had borrower fax all required documentation and then after checking back once a week for eight weeks a “work out representative” offered a three year forbearance agreement that was less beneficial and required homeowner to sign and notarize a form that stated the homeowner “further agree to waive any claims or cause of action you may have against us as a result of this account” as a condition of acceptance.

    Fact – The problem isn’t the program; it’s the maze that the banks make homeowners navigate to apply for it!
    The hoops the banks have created to apply for this program are used to discourage distressed homeowners seeking relief.
    On all the banks websites with the exception of Chase the space dedicated to the Home Affordability Program is either buried non-existent or the links send you in never ending circles. *(Sites have been updated in recent months!)
    Most elderly and low-income homeowners don’t have access to the Internet to download the necessary forms.
    When a delinquent homeowner calls their lender they are automatically transferred to the collections department. The collection department has no interest in assisting the borrower modify their loan they only want a payment. The collection agent does not identify themselves as such to the homeowner and far too often mislead the caller into believing if they don’t make a payment or post date a check for payment they will not take their modification request into consideration. Most homeowners just simply give up after being misinformed that they are not eligible!
    When called directly all of the above-mentioned Banks do not give a complete list of documentation to the homeowner to apply for the Home Affordable Modification Plan. When only partial documentation is compiled the Banks cannot process for the Gov. plan so they offer their own less beneficial plan.
    Most homeowners do not have ready access to a fax machine and none of the banks will give a mailing address to send the required documentation, so they have to go to a FedEx Kinko’s or similar store and pay almost $1.00 a page to fax in the documentation.
    Even with a fax confirmation there is no guarantee that these banks received all the documents.
    Homeowners have no way of following the progression of their application and when they call in they are routed in never ending circles to every department but the one working on their modification.
    These are just a sample. Most homeowners are told they don’t qualify prior to even sending in the documents! This was the case with the three individuals I referenced above. I have first hand knowledge and a paper trail of dozens of these unlawful occurrences. By law these Banks that received TARP money have to comply and they are not. Something needs to be done. This has to be exposed! Thousands of eligible homeowners need to be given the opportunity to keep their homes and succeed in this program. Banks are fleecing U.S. Citizens for their own profit! I have also studied the HAMP guidelines extensively to assist homeowners that my office could not help. I found that if properly cited the HAMP law actually prevented any foreclosure prior to the homeowners’ consideration for the program. My wife is an attorney, I did the research on this law and she later appeared for a client that had a default judgment entered against them in a foreclosure matter. The judgment entered May 2008 and subsequently set for June 09 to confirm the sale of the property. She successfully cited the HAMP guidelines and the judge granted the motion to vacate the order previously entered and allowed the homeowner time to submit an application for a HAMP modification. Below is a summary of my findings after meeting with various lenders regarding HAMP that my wife utilized in this case:

    I recently had the opportunity to attend a meeting on President Obama’s Home Affordable Modification Program with representatives from Major Banks and Servicers.

    The Bank representatives from two of largest servicers in the United States boasted servicing one in five mortgages equating to almost 14 Million loans an approximately 8 Million loans respectively. In addition, the first Bank proudly disclosed that they have doubled the number of associates dedicated to home retention to 7,400 this year at which point the other Bank proclaimed that they had 11,000 associates dedicated to home retention.

    The combined resources that just these two major lending institutions have dedicated to home retention is equal to .08 % of their entire servicing portfolio, less that 1/10 of a percent. This abysmal percentage truly represents the Banks intentions to comply with the Presidents HAMP program.

    In order to understand why the Banks and Servicers are not making a good faith effort to comply with this law you must first understand what the HAMP program requires of them:

    Servicers should not proceed with a foreclosure sale until the borrower has been evaluated for the program. Any Foreclosure action must be temporarily suspended, including new foreclosure actions.
    Servicers must establish a property tax and homeowners insurance escrow account and disperse payments to the insurance provider and County and roll this expense into the principle balance of the homeowners current loan (even if delinquent taxes are owed and no previous escrow account was established).
    Servicers must reduce monthly mortgage payments to an affordable level based on the borrowers income, regardless of principal balance owed.

    The HAMP underwriting guidelines require the Banks and Servicers to accept lower payments and pay property taxes to the County and homeowners insurance out of the Banks’ funds! The Banks do not want to concur this expense; it is less costly to foreclose.

    The representative from the housing counseling organization stated at the meeting that day, “We needed another moratorium, or new Law to stop the foreclosures plaguing the city of Chicago”. I stated that, “You don’t need a new law, you just need to enforce the American Recovery and Reinvestment Act of 2009, that President Obama already signed.”

    President Obama signed the American Recovery and Reinvestment Act of 2009 into law on February 17th. On April 6th 2009 the Treasury Department issued uniform guidance for loan modifications across the mortgage industry in supplemental directive 09-01.

    In accordance to the underwriting guidelines for HAMP within this Law:

    Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure prevention options fail, the foreclosure action may be resumed.
    Participating Servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.

    On April 21st 2009 the Treasury amended the supplemental directive 09-01 with Announcement (09-05R):

    Q3. How should borrowers who contact their servicers be handled with respect to HAMP if the servicer does not yet have the proper documents or is not yet equipped to evaluate the borrowers situation?

    Servicers are required to validate the homeowner’s eligibility for HAMP and capacity to pay. Servicers should begin the process of collecting the required documentation from the homeowner and the information necessary to establish an escrow account on non-escrowed loans. Based on the servicer’s understanding of the homeowner’s ability to pay, a servicer may place a homeowner on a forbearance plan pending its ability to execute a HAMP modification. Foreclosure actions (with the exception of those in Georgia, Hawaii, Missouri and Virginia), including initiation of new foreclosure actions, must be postponed for all borrowers that meet the minimum HAMP eligibility criteria.

    Q8. Must servicers suspend foreclosure or not initiate foreclosure for all borrowers who are potentially eligible for the HAMP?

    To ensure that a borrower currently in foreclosure or at risk of foreclosure has the opportunity to apply for a HAMP modification, servicers should not proceed with a foreclosure sale until the borrower has been evaluated for the program. Additionally, servicers are strongly encouraged not to initiate foreclosure until a borrower has been evaluated and determined to be ineligible for the program or the borrower fails to respond to a Trial Period Plan offer that has been made by the servicer.

    All Fannie Mae-approved servicers must participate in the program for all Fannie Mae portfolio mortgages loans and MBS pool mortgage loans guaranteed by Fannie Mae.
    Legally, Banks and Servicers may not proceed with a Foreclosure sale until the borrower has the opportunity to apply for a HAMP modification. Since the Banks and Servicers have not allocated the resources necessary to process the 4 to 5 million eligible homeowners currently in foreclosure or at risk of foreclosure as intended by the Obama administration, the courts should then enforce it!

  49. Barbara Jones says:

    I am in bad shape ,behind in mortgage,taxes and insurance. How did this happen to me ? tenants paying late everymonth since June.My property has a second that is automatically withdrawn from my checking account but the first is 2 months delinquent . Can i apply for HAMP ?

  50. Albit Caban VP- Pinnacle Morgage Solutions says:

    The common perception of the average consumer is that my lender does not want to take the loss by foreclosing on my property and that they want to work with me if I need financial help in modifying my loan. In most cases, nothing could be further from the truth! Most lenders, despite taking TARP money, have little interest in helping the average consumer and have hired an army of minions in their loss mitigation departments who will block you at every step and lose your paperwork in a focused attempt to dissuade all but the most tenacious and astute borrower. Additionally, they will push you to take your financial information so they may record and document it, mainly in an effort to disqualify you from a loan modification.
    To qualify for a loan modification, your financial situation (assets vs. liabilities) must fit into a narrowly defined box for your lender to consider you for a modification. You must have just enough income, but not too much. Your debt to income ratios must fit within certain guidelines, and these guidelines vary be lender and change all the time based on the Investors guidelines (the person or entity that actually owns your Mortgage Note as the bank is just the servicer in most cases). Your housing costs vs. your net income must be within certain limits as well. Giving your financials incorrectly or not within guidelines may permanently disqualify you for a loan modification, ending your chances for financial relief. It is in properly preparing your financials where Loan Modification companies in part earn their money!

    Beware! There are many non-qualified companies including debt settlement companies and former mortgage companies vying for your money, all claiming to help you with a loan modification. They promise you anything and tell you what you want to hear in regards to the outcome of your case without taking any financial information or doing any analysis of your situation. A reputable company will turn down close to 40% of the people seeking help as they will not fit within the lenders modification guidelines.
    A loan modification by definition is designed as temporary financial relief to help a borrower get through a documentable financial hardship such as job loss, income loss, divorce, medical issues, etc. It is not as give-away program just because you want a lower payment. A proposed payment to your lender is typically calculated by taking your net income and trying to fit it within the upper limits of your lenders underwriting guidelines. If you are being promised a new interest rate or a principal write down by a company, they are likely scamming you. Make sure the company takes a full financial profile before determining if they can help you. Make sure they are proposing a new payment within the lenders underwriting guidelines.

    In summary, never pay for loan modification services unless you are retaining an attorney who has at the very least taken your full financial profile before determining if they will take your case. If they are not interested enough to see if you qualify, they have little regard for the outcome of your case. Remember, it is still a negotiation process and ultimately it is up to the lender to decide if they will modify your loan. If you don’t fit within the financial guidelines of your lender, your chances of a successful outcome are slim.

  51. Franco says:

    Can anyone comment on Platinum Mortgage Services in California? Are they legit?

  52. none of your business says:

    all i have to say is that there is a lot of helpful info on this website, but some of the things that are said are just wrong. this is a numbers game, if your financials can suppport a MOD then you have a chance, but who ever reads this needs to understand, that the loan servicer and the customer are not the main parties, the loan servicer will obtain the borrowers info, and they will then go to the investor of who they are servicing for and present them with a off on behalf of the borrower, and unforntunately there are some investors that do not do MOD or have extremely strick guidlines that the serivcer has to follow, and no loan expert can force investors to do anything with there money(home loan)……. so who ever reads this just know that none of these thrid parties or attorney’s can promise a MOD. and they are wrong for giving that as a guaranty.

  53. Mii Gwiich says:

    Come on now Captain Petrov, let’s place the blame directly on the shoulders of the people that caused this meltdown….. The governement! Cheap and easy money issued by the Fed, regulations that made giving “no-doc” or “liar loans” to people who could not pay them back, lender fears of being burried in investigations for alleged “red-lining”, Fanny and Freddie buying up every piece of junk paper they can find, those same Fanny and Freddie loans being packaged and sold as mortgage backed securities (I buy into a investment guaranteed by the American tax payer to give a return too if had the money), etc. etc. The Fed Government made the rules and you want to blame the lenders for playing by them? Did you expect the lenders to take the moral high ground and say, “Sorry Mr Dodd, sorry Mr. Frank, but we are not going to make the loans that you expect us to. Accuse us of red-lining and shut us down if you must, but we cannot, in good conscience, make loans to people that do not have the ability to pay them back. It would not be fair to the American people whos tax dollars are insuring those loans.”? Get real. If the government would never have gotten into the mtg business, this would never have happened. Lenders would NEVER have made such horrible loans if the government hadn’t been preasuring them to do so. So let’s stop whining about the “evil lenders” and start talking about how to get government out of our economic lives and let the free market regulate the activities of all sectors.

  54. adrienne says:

    we are trying to get a modification on our loan and we have been since
    june.our mtg. company is citi financial and they keep telling us thay are waiting on our arm rate to be able to make this decision.what should we do while we are waiting for there respons???

  55. carolyn berrian says:


  56. Lis says:

    Hello, we are in the process of applying for a home load modification. Its been 4 mths since we have defaulted on our load and this week we received a letter from WAMU/CHASE stating if the payments are not received by 11/4, our house can be foreclosed. We have submitted requested documents repeatedly to WAMU/CHASE via a 3rd party, but to very little avail. Ive been told its is normal to receive foreclosed letters during this process. Is this true? We are very scared of losing our home, can someone suggest what we should do next? Thanks

  57. cjl says:

    I do loss mitigation case processing/underwriting for a living. Most lenders have forms on their websites along with lists of the documents they require to assess the situation.
    It is extremely important to get everything they request into them in one financial package. Until the lender has all the information it requests the case will not be assigned to an analyst to assess. So if you get a letter requesting missing documents get them in ASAP because your file is not moving until you do. This is often why it takes so long to see results.
    Gather everything the lender asks for and get it to them as quickly as possible. Your home depends on it!
    Send all documents by a trackable delivery method such as FedEx UPS, or Certified mail. You want a signature from someone at the lenders when they recieve the package. Likewise if you send any money send it in a verifiable form such as Western Union Quick Collect. It’s a $12.99 flat fee and you can track it. I’ve had lenders deny receiving agreements or funds by the due dates and all I had to do was go online and verify that the agreement was recieved, what day, what time, and who accepted it. You call the lender with that information to see if maybe they cooperate a little better then. They are waiting for you to make a mistake so they have a reason to deny you so you have to stay on top of what is going on.
    In most states 4 months is the point where the lender considers the loan far enough in default to file for a foreclsure hearing. At this point they will no longer accept any payments from you. This when you start saving as much as you can because a down payment is going to be required to stop a sale date if it comes to that.
    Sale dates can be put on the house anytime after if goes into foreclosure. Each state has their own time frame. In Texas, homes in foreclosure are auctioned off the first Tuesday of each month. In California and New York I’ve seen people live in homes for as many as 30 months before a Trustee Sale Date is set.
    Depending on how much you are in default, the down payment or “contribution” amount could be from 1 full mortgage payment to 30-50% of what is owed. Once you reach the one year mark the lenders generally want 50%.
    The lender will not stop with the collections efforts until they have some money from you, so don’t answer the phone, but do read your mail. That way you won’t have to deal with the collections Rep’s. You have enough stress in your life and these people can be brutal as they get a commission for each person that they harass into making a payment. It’s much easier to read what they have to say and then add it to the pile of paperwork that you are saving during this whole ordeal, than it is to take the kind of obuse collections is going to dish out.
    As a third party I make sure that the documents get faxed into the lender. Then 3-5 business days later I call to verify that the fax was recieved and that they got all the pages. Then I call weekly to biweekly to get updates and see if there is anything else that they need to keep the process moving. I keep all faxed documents, fax cover sheets and fax confirmation sheets clipped together. I keep written notes along with all corespondence from the lender.
    Your third party should be taking care of all this for you and keeping you up to date with what is going on but sometimes third parties don’t want you to know some things because if you could do it yourself you wouldn’t be paying them to do it for you. But they should be earning whatever you are paying them.
    I do this work because I need to make a living somehow but I really do enjoy helping people. So hope this helped you.

  58. Mr. Sharaf says:

    Exceptional feedback CJL and this is largely what we have determined to be accurate when dealing with the lenders or servicers. Thank you for the verification and we’ll remain open to additional nuggets of wisdom that you may share.

    Best regards,

    Mr. Sharaf

  59. Frank says:

    I’m trying to get a Loan Mod with BOA under the HAMP. I’m married, but my wife is not on the loan. According to the HAMP Supplemental Directive 09-01 dtd 4/6/09…disclosing her income is volutary. If I do disclose her income the best BOA can do is put me into a Forbearance agreement.
    The directive reads as follows, “Servicers should include non-borrower household income in monthly gross income if it is volutarily provided by the borrower and if there is documentary evidence that the income has been, and reasonably can continue to be, relied upon to support the mortgage payment. All non-borrower household income included in monthly gross income must be documented and verified by the servicer using the same standares for verifying a borrower’s income.

    Please advise,
    Thank you

  60. jennifer brackin says:

    now i’m really confused. we have a home loan with bank of america and wilshire. in the beginning we were on a fixed rate, which was high, but it was our stupidity that signed those papers. we wanted this house and didn’t understand anything about interest rates, fixed, or arm. to trustworthy in believing those lenders, during our closing, we realize we would only be on a fixed rate for 2 YRS. again, stupid, we in our minds said, it’s ok within two yrs we can get refinanced. but then this yr, basically all hell broke loose with the economy. so now we are screwed. we went to a home modification so called specialist, and at the time we were not behind, but after months and months of waiting we did fall behind, we paid them their $1500 in may and today we get a call, the woman on the line said, we have great news, they have come up with a resolution, your payments will now be $1475.00 a month, we were paying $1400 a month at an interest rate of 11.% percent on one mortgage and somewhere like 10% on the other. these people promised us a reduced mortgage payment of $856.00 for both, with an interest rate of 5% fixed. we have complied with all requests from them and the lenders, we have sent in bank statements, check stubs, tax info, and basically our blood. i really feel screwed again, very confused, and hurt because we trusted someone else with our lives , and to know, not only did they, the lenders took advantage of us, but also a so called company that is GONNA HELP US. WHAT DO WE DO NOW

  61. Albit Caban VP- Pinnacle Morgage Solutions says:

    4. Erroneous reports that rates are going to drop lower and therefore causing consumers to delay taking advantage of this opportunity.
    5. Since this program began in June 2009, rates have risen approximately .500%.

  62. Nancy Workman says:

    I am so frustrated with this modification program, I have been dealing with Chase for 7 months. Was told the modification would be finalized first week of January. Sent in my payment, and on December 31st, the modification was denied, saying I made too much money. How can that be?????
    Put me on another plan, sent me papers to sign, and the payment doubled, how do they expect me to pay double, when I was having a hard time paying the first modification deal.
    I have called several times, to get 4 different people, with 4 different answers.
    I have finally given up, I will not pay February’s payment and they can take my house and stick it where the sun don’t shine. I really wanted to save my house, but it is not worth all of the stress that I have been under for a year.
    Obama and the banks are not trying to help us.
    So, bottom line, Chase has another home that will be foreclosed on, and what are they going to do with it, good luck trying to sell it for what I owe on it.
    Circumstances arise beyond our control, but I am so done with all of this crap, I am finally feeling better.
    Just waiting for the sheriff signs to go up and I will go and they can have this house

  63. GINA says:

    We have been in mod since 12-08 with WaMu/Chase. Have recieved many answers to questions. Nothing seems to be working with our mod either. They wanted us to sign a second note for 8850. and give us 2 months off, however we are only 5106. behind. Heres the kicker we were told this second loan is with 5% interest and all the money they have collected in 2009 they put in a suspense account and did not put towards payments. We now have no inerest to claim on out income taxes. They also gave us a temp forebarence and the 200. differance each month has added to the amount we were behind. Now what seems odd is this we were told after hurricane ike to take 2 months off and put them on the back end to help us. They did not do that and were anr now 3 1/2 months behind. We have also been hit with inspection fees of 10.85( drive by to make sure we are still here, where else would we be) and they have paid our Mort Ins payment every month without fail. For 12 months we have been requesting a full payment history, but it never comes. They have over the last 13 months told us we were in the completion phase and can not take a payment, it would through off the numbers for the modification. I am so ticked off, I am giving a number out that might help others with calling, it is a direct line to the
    VP of cutomer care Larry Thode 1-800-848-9136. They have been the only Dept to contact us since May of 2009. I mean we have not had any paperwork sent to us ecept the special 2 month temp. workout paper work. I also have a number of a very rude person who said ” I am here to personally answer your questions and will help you, but you need to understand it is your fault that you did this not mine”
    Her name is Heather 904-281-3900. She has told us to bad this is what they have to offer a second loan for 15years at 5% and bumping the total up by 3200, and we can either sign or lose our home. So anyone who needs to vent call them and piss them off as much as they have us. Sorry for venting but we did not ask for ike to hit us, and we never wanted to be in this situation and have jumped through all the hoops and for what? Anyone know of an attorney in Texas we can call?
    Thanks, Gina

  64. one question and one comment.

    1. Do you have to use your current mortgage company for a loan modification?

    2. Bank of America is also not being upfront with about loan mods, they want to steer you to a refinance of mortgage


  65. L.T. says:

    gabe, stay away from B of A.

    so i’ve been trading on the market for about 3 years as a stockbroker, and i’ve been selling life insurance. and now i will be refinancing homes for a firm in addition to those things. i think that i can really help people with this company’s backing. i’m simply online doing some research and getting some feedback regarding people’s needs in order to see how i can maximize my knowledge and services to assist them. wow, i’ve learned so much here and will NOT be recommending 955-HOPE!! good luck to all of you!

  66. Drew says:

    I have a second home that I bought as an investment. Heck of a deal, it’s now worth about half of what I owe, I’m making half of what I was and I’m about to walk. The loans with B of A, is there anychance they will discuss a loan mod on a second property?

  67. Linda Bogenschneider says:

    I have hired a 3rd party to handle this for me. It has been 4 months and it still is in review, how long should this process take? Thanks

  68. Pranshu Anand says:

    keep guiding !! you are helping stressed home owners and I appreciate it .

  69. Lisa Kojetin says:


    Getting a loan mod on a 2nd property if a very tough thing to do. It will help if you have a family member living at that address. The company I work for has got them done but like had said it is tough.

  70. RACENA M. says:

    Hi, your site has been very helpful to me , and I wanted to ask a question do you have any info on my situation. We were on the trial HAMP with Saxon mortgage since Aug. o9 they just denied us in Feb stating the reason as a missed payment in Dec. I spoke with several call center reps who informed me we had no missing payments that was in Feb. and they told me to keep making the trial payments then last month we get a breach letter stating that unless we pay 15,000 by May19 we would go into foreclosure. I have spoke with several reps to dispute this and have been told that if we missed a payment on HAMP that we could not obtain a traditional modification but have been told by other reps we could get one , now just 2 weeks ago I had a rep in the mod. dept send me out the financial packet and took all our financial info over the phone and told me we did pre qualify so when I recieved the packet I gathered all the financial info required and sent it back via fax I have checked back daily and was told yesterday that they did recieve the info from me and it had been submitted into the system the rep told me to check back every few days to make sure there was no missing documents which I will do but my question is have you heard of this you can’t get a traditional mod if you have been denied HAMP for a missed payment? And Since they have submitted our financial documents and our deadline is May 19 to cure the default will it still proceed with the foreclosure process? Or does that halt when you are trying for a loan workout/modification? Thanks for any info you can provide.

  71. David W. says:

    B of A just sent me a loan mod. It was full of fees which seemed to look like a good deal, but the fees were over 10,000. They also would not send written assurance that they would not send me a 1099 on the reduction amount. (28% income tax on the amount)
    After further review if I were to pay the tax and fees It looks like a good deal for them and not me, they can try to find me in the Islands…
    If they are willing to play ball, sign me up, right now they are kicking the tires.

  72. Francis E. says:

    I have just received my Loan Modification Agreement from Wells Fargo and they have countered with a balloon type offer. Pay the first five months at 5.25%, jumps to 5.75% for the next four months, after that it goes to the “Conversion Date”, accordance with note. Whatever that statement means? If I do not sign this, what can I do at this point, renegotiate and not pay my monthly? What happens to my house if I try to play hardball with them? Also I was advised of a selling date on the house, can they do that and how can I prolong something like this? Thanks for any info that you can give and your time.

  73. Coach G. says:


    Generally I ignore websites like this because all I hear is one-sided, no responsibility rhetoric that doesn’t address the heart of the issue at hand. However, this page is an example of the excellent balance of compassion and common sense I’ve found as I’ve been reading through this site.

    And yes,

    Why do the members of the mass media ignore questions that get to the “systemic” issues? How the heck can newsroom editors and bureau chiefs parrot the lender party line that they are “doing everything they can to help homeowners” when loss mitigation departments are getting gutted at exactly the same time when claims, phone calls, defaults and foreclosures are climbing to the stratosphere?

    Thank you for the work you do. I’ll make sure to heavily profile and link to your website on my site.

    Coach Gogo

  74. Theresa Donley says:

    How about this…A 30 year adjustable loan, scheduled to reset beginning the 7th year…and the lender decides to ask you to requality! The note and mortgage only give them the right to charge a $250 fee. Does this constitute fraud on the part of the lender?

  75. Robert L. T. says:

    What can you tell me of this company and has anybody hired them to do their modification, also what can you tell me about (5/3 BANK)?
    Ramon Ramos
    The Treusch Law Group
    Loss Mitigation Representative
    1000 E. Hallandale Beach
    Hallandale Beach, Fl 33009
    Tel 954 457 1248
    Fax 800 242 2305

  76. bill glickman says:

    i am helping friend with mort modification been going on for 8 months
    they say it is now “under review”meaning it is with the underwriter.
    who is essentially a banker with no name, no contact number who has the power to accept or deny.they are rewriting mort that someone is presently going to lose money on ,(untill of course house goes into for closure)
    i believe they now have to state the EXACT reason for denial.
    so i will let you all know how it goes. this month should be it.
    ps considering the time it take to talk to anyone i would recommend sending in a letter for a third party (friend in our case)permission to talk for lender. will need last 4 # of SS . it at least keeps thing moving to some degree

  77. pamela hinton says:

    please help parents applied for a loan modification in aug,2009 and have gotten nowhere. they are at there wits end and soo am i. they are 2 months behind and can not catch up. my mother had a stroke several years ago which sort of through them a rough ball. then medical bills piled on. they are senior citizen and have no computer skills and i have very little.for the past year, i have been faxing their mortgage co. the same papers over and over again still with no results. we have sent them everything they have asked for including several hardship letters.still nothing. this is litterally killing my mother.she worry everyday about this and there is nothing i can do. please if there is anyone out there that can help me please email of call me asap.the no. is 2524269699. i am desperated and don’t know what to do. please help!!! pamela.

  78. Paul Monahan says:

    I refinanced my adjustable rate home equity in 2008 before this program came out but I am currently unemployed and the prospects for future jobs look slim – the future is uncertain. I owe 280k and my house is probably worth a bit more or less than that.
    Can I qualify for a remodification?

  79. Mortgage Holder says:

    I just wanted to say, i do not know this persons site, but by looking at it, I have a mortgage and 6 months ago, I went and asked my lender for a home loan modification. I was never laid, but laid off from Hewlett Packard in their ever endeaver axing jobs. This guy what he says you have to be thick skined and be the loudest voice. It does work, do not let up, fax every week whatever you have to do to drive the nail into the lender to were they break. they ended up breaking at my command, oh i did use the lawyer wild card in the end.

  80. m72 says:

    * make sure to make your payment every month on the same date so u do not get kicked off.One day late can kick u off!
    * Even if you are not on a trial program keep making those payments!”even if your banker tells you NOT too!”(I am lucky that i have been advised by decent banker from the Chase Corporate Branch)after 20 debt-collector- bankers telling me the wrong things for almost a year. Now I know what is expected going through this long- stressful- process!
    * If you can now make your payments again,always pay an extra dollar or more-it shows the bank u are able to pay.
    * If the bank will not take your payment at the branch do a WESTERN UNION QUICK COLLECT-those usually always go through.The fee for Quick Collect is $12.99
    * You are more likely to get approved if you show that you can make your payments again.If you are needing a lower payment and cannot keep up with the payments at this time,thinks may still work out but i would have a back up plan just in case they do not.
    *When you do fax all the paperwork FAX FOR FREE AT YOUR LOCAL BANK BRANCH.It is free and since it is Bank BUSINESS they HAVE TO DO IT even if they act rude towards you go to the next teller.
    *If you don’t have a printer or do not want to use up all your printer ink go to the LIBRARY ,use the library computer for FREE and print everything out for 5-10 cents a copy.AVOID KINKOS at all cost unless you don’t mind paying them for something you can do for free!
    *If you need to prove income and you are in a $CASH business now-so many people are like NEVER before(dog groomers,bartenders,car washers ect.)You must open up a checking account and put your cash pay in there every week so it CAN be documented.Put it in and take it right back put if you need it right then.Other wise you will not get approved just by stating your income or a letter from your boss saying that you work for him/her.

  81. [...] get your lender's attention, but you didn't so it would rather help since you were already denied. Loan Modification Myths and Facts | You may also want to look at this thread below as well as look over some others pertaining to [...]

  82. sondra says:

    How do we get in contact with you David? I dont see a phone number.

  83. [...] here only people who are delinquent get any type of help with a modification from their lender. Loan Modification Myths and Facts | This article confirms the reason why this is so, because of the economy effecting even the lender [...]

  84. joel crowley says:

    I was denided a modification after 14 months faxing documents over and over to chase because I have a college fund for for 17 year old daughetr. They had all hje same info for 14 months stringing me along then denigned modification.all i wanted was a 40 year loan at 4 1/2 %. I am 70 yrs old built house 5 acres daughters born. they are so cold. Went to Hope confrece call all in order but still kicked me off. Grrrr never missed payment or late credit score 840. Cant wfinace cause value dropped. May be I should stop makinf payments and detroy credit???? Help please. Semper Fi!!!!

  85. no help yet says:

    [...] get more attention and help on your mortgage from your lender or servicer if you’re late. Loan Modification Myths and Facts | Best Regards, Alex Reply With Quote   + Reply to Thread [...]

  86. [...] get more attention and help on your mortgage from your lender or servicer if you’re late. Loan Modification Myths and Facts | The quote speaks exactly for itself. It's strange how these modifications work. I see all the time [...]

  87. Rick Carr says:

    Please help me. Just got a default letter , i need advise.

  88. henderson braxton says:

    i have tried for 8mnths for home loan modification,and finally iwas denied. i am facing foreclosure,could u tell me if i have any other options left i am willing to work with bank of america ,if the would only give measecond chance too keep my home can some one please help me.

  89. Jim Margolis says:

    Prior to signing forbearance agreement and providing your inc. and exp, bank says you don’t need to make the last payment of 26k, which if you qualify for the mtg, will be capitalized over the remaining 25 years of the modified loan, just the first four payments totaling 27k. You pay the 27k on time, and recieve thereafter a letter from the bank congratulating you that you qualify for the mtg which requires you to pay 6k per month rather than 5.3k you had been paying and requiring you pay 15k within five days for what they don’t say but they say you agreed to pay it, but don’t say where or what it consists of. You call them saying it must be a mistake, your purpose was to REDUCE your monthly payment, not increase it. They say they will look at it again, ask for updated monthly inc and exp. which you prepare and send. More than two months later you receive a letter from them denying any modification because they say your inc. is 500 less than your income. Your call them and say they made a mistake in their calculation, but anyway, in the two months since sending in the last inc. and exp. you got a new job which pays you $1700 per month more and your employer will overnight certification of this fact. Forget it they say. But they direct you to HAMP which you pursue the next week. Two weeks after they turned down your request for a mod., they sell your house. You sue the bank for breach of contract, fraud, fraud in the inducement. Your asking us to recheck our figures, constituted a either a rejection of our modification offer or a counteroffer. We had no contract to breach, we were just negotiating at that point and could walk away which we did. I say the agreement was for a modification that reduced the monthly payment. That was the context. No they say, you bargained for us to see if you qualified for a modification, and you originally did, but one that modified your loan providing for higher monthly payments. Any of you guys run into this kind of situation.

  90. Harold Cook says:

    I have heard that when a bank forecloses on a home that they are receiving 70% of the original homes value under Obama’s Loan Modification program. Please tell me this is not true.

  91. Moe Bedard says:

    I have not heard that one, but I have heard that most of these loans were 100% insured to the point where it is best for them and the investors if they foreclose because they will get all the money as opposed to just some if they perform a loan mod or short sale.

  92. RPP says:

    Dear Jim. Sounds like California.

  93. m72 says:

    I have been working on a home modification for over a year now!
    I hope to be modified soon from Chase,keep talking to people until you find the person that cares!

  94. alicia whitehurst says:

    Is there not some type of Class Action Suit against these mortgage companies? I see deliberate negligence on the part of so many mortgage companies. Are there lawyers handling any cases of gross misrepresentation? I have experienced no offer of help through HopeNow because of the Fannie Mae loan origination that we have. The HAMP was denied and the mortgage company that the original loan was sold to claims to want to help in their letters, however say there are no programs to meet our situation. With this many situations nationwide there must be something going on to stop the almost forced foreclosures that seem to be happening. I do appreciate all of the info on this blog. Thanks for sharing.

  95. Joe says:

    I realize I DO qualify for a modification with my mortgage banker but I do have a CD worth 20,000. If I cash that in and get a Cashiers Check and hold onto it so I can qualify, can my mortgage banker find out that I have this 20, 000 cashier’s (uncashed) check?


    this whole thing is a scam paid an an attorney from a company The Aide Group they were to handle this they had me write a check to a lawyer and told me to stopmaking payments atorney never new i was alive but from the aide group they said stop making payments to indymac aka one west bank did itand thank god to my deceased brothers who helped me died within 3 months told me pay up i now owe 19k got no where and i am taking this futherit turns out indy mac investors deusch bank never offered hamp thank god i have documents that were signed by me yes i was deneied from day one but lost 3k i hope all you people out there goand fight thru the real leagal system wish all well and a happy story but it seems like its all banks. i dedicate my strength to my dad 2009 my brother tom 2009 and my brother jim 2010 to give me the strengh to keep going and my deceased brother tom to get me back on track. my story will go on to help all of us who believe in our system. thank god i am back on time and will remain to fight for all that will be homeless hang in there.. maggie

  97. My husband has said all along that this whole situation was 100 percent the fault of the government and the financial institutions of this country.

    Our house developed a bad septic system in 2007, but its value has gone down significantly and we are now underwater on our mortgage. It will take $20,000 to $30,000 to fix the septic system. So we may be paying on a $213,000 mortgage for a home currently valued at $105,000.

    Our mortgage company won’t work with us, and with all the extenuating circumstances involved, I feel our only option is to file to bankruptcy. But then I won’t have a house to live in.