Yesterday, I received a letter for one of my client’s regarding her loan modification. This client had been fighting with her loan servicer for over two years to obtain a loan modification, despite having documented income and a clear interest in saving the home. I filed a foreclosure defense lawsuit for her earlier this year and I’m pleased that the case has been settled with my client getting the loan modification she deserved.
In this letter, her servicer notified her that the first mortgage payment would be due on January 1, 2012. Bizarre? Unfortunately, from what I have seen with loan modification files, these errors and careless errors have been all too common.
I’m sure some will ask: what’s the big deal? Couldn’t your client just call the servicer and get the correct date? The problem is the widespread practice of loan servicers routinely playing games with loan modification applications in blatant violation of state and federal law. Struggling homeowners, who can afford a modified payment, become the victims of these errors. A single, incorrect date may not be a huge deal, but it is reminder that loan servicers are often sloppy with their paperwork. With this in mind, homeowners need to keep records of everything they submit to a loan servicer and seek an attorney if the servicer is not playing by the rules.