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Critics blame the banks, saying lenders often ask borrowers to send the same documents over and over again, explaining that they have been lost.
After four months, the information becomes so dated that the entire process has to start over again. Those paperwork glitches leave many borrowers paying their mortgages with no assurance they will avert foreclosure.
“The ‘lost fax scenario’ happens frequently,” said Gabe del Rio, who heads San Diego’s HomeOwnership Center, a nonprofit agency that offers free advice to homeowners. “Lenders often say the documents have been lost or misplaced. We try to make sure they have everything they need, and wehave our clients call every two weeks to make sure everything is there, but even then there are times the borrower has to resubmit all the documents.”
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