Last Updated Jun 21, 2010 8:09 AM EDT
But for some folks, the loan modification hell has moved into a level of suffering that surprises even me. I've decided to start a new post where you can leave your worst loan modification hell horror stories.
I'm hopeful that the big box lenders (Chase, Bank of America, Wells Fargo, Citi, and others) will recognize that they need to take some action - and will start correcting these injustices. There's no reason that this modification should have taken 18 months - only to now be rejected.
It's the worst sort of customer service.
Loan Modification Hell: Karen's StoryI'll kick this off by sharing this email I received from Karen:
I have a "mortgage horror story" for you. It involves the greediest, most ruthless bank on earth - Chase - and my elderly, disabled parents.
My mother Frances is 66, and my father Vincent is 73. Vincent is totally disabled following a massive stroke, so he can no longer work, and Frances, a cancer survivor, now has to work 2 jobs, 7 days a week to make ends meet. Due to my father's disability, they have been forced to live in two separate properties. Vincent must reside in a small one-level condo with a full-time, live-in caregiver.Please feel free to leave your comments and stories here.
Because of all the hardships they began to fall behind on mortgage payments. Also, all the loans they have are negative amortizing "option ARM" mortgages, which are considered predatory.
They contacted Chase right away, as soon as they started falling behind, have been working with Chase for the last 18 months - yes, 18 months - to find a solution. They even successfully completed two 3 month "trial modifications," making three consecutive "trial payments" on time. Despite their good performance during the trial period, and despite submitting every
document Chase asked for - 100 times - and despite their obvious hardships, Chase just announced that they plan to foreclose on one of their properties. We are now expecting bad news on the other properties too.
I thought you'd be interested in this story since it shows that greed is Chase's only motivation. My parents have PROVEN that they CAN afford to make the trial payments, and if Chase would just make the trial payments PERMANENT, this situation would be resolved. But God forbid they make things easy, or help those who are sick and disabled.
Please distribute this story to anyone and everyone you can. We don't have a voice - but you DO. And if you have any advice to dispense, or referrals or recommendations to anyone who can help, I'm all ears (or all "monitor.") :) Thank you.
- Loan Modification Hell: Income Requirements for New HAMP Rules
- Want A Loan Modification? The New HAMP Rules For Trial Loan Mods Start June 1
- Gulf Coast Homeowners Get Relief From Foreclosures and Mortgage Payments
- Real Estate Values: Does Your Home Value Matter If You're Not Selling Or Refinancing?
- Mortgage Rates Hit Record Low While Purchase Applications Plummet
- Mortgage Interest Rates Could Hit Rock Bottom Today
- Strategic Defaults Increasing As Homeowners Choose Not To Pay Their Mortgage
- Foreclosure Coming? Perhaps You Should Bulldoze Your House
- Are You In Loan Modification Hell? Join The Club
- Underwater? Maybe You Should Walk Away from Your Mortgage
- Will.i.am Saves Two Families From Foreclosure
Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com.