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When Fallbrook homeowner Armando Robles was rejected for a permanent mortgage modification, he was disappointed —- but that was nothing compared to how he felt when he discovered his credit rating was trashed and he was stuck with a “catch up” bill for $10,500 piled high with interest and late fees.
Robles says he made every payment and filled out every form required under a federal program designed to stave off foreclosures nationwide.
But after he was turned down, he found himself punished for trying.
Robles is by no means alone, according to Treasury Department and bank representatives.
As of the end of March, 155,000 borrowers have been rejected from the federal loan modification program, which reduces payments during a trial period. Bank policies vary, so it’s not possible to determine precisely how many borrowers are in the same fix as Robles.
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