You’ve spent all the time and effort needed to submit a loan modification package, and even made trial payments in full, on time – but something went wrong. There are a couple of different things that can happen during the loan modification trial period, but as long as you hold up your end of the bargain, the bank should as well.
There are two potential reasons why a bank would not honor a permanent loan modification after you’ve made trial payments. The first reason would be that they simply do not approve the request, despite their previous offers. This can occur because paperwork is lost or personnel changes and there is a lapse in communication. Often times, this can be resolved, but you will need to be able to provide your lender with all of the appropriate paperwork that you filed once again. While this in no way an ideal scenario, it’s much easier to fix than the second.
The second reason why you would not be approved for a loan modification after successfully making trial payments is because your lender sold the loan to another servicer before the mod was made permanent. As an experience mortgage lawyer we often hear from homeowners that had their loan transferred from Bank of America to another lender such as Ocwen, Nationstar or SPS lending. When this happens, paperwork is often lost or misplaced, meaning that the new lender has no record of the loan modification.
The new lender must honor any agreement that you entered into with your previous mortgage company. If your loan modification should have become permanent, but did not, your monthly payment amounts could go right back up to where they previously were. Our mortgage litigation attorneys help homeowners fight situations like these.
How to Communicate With Your New Lender
If your mortgage was sold to another company during the loan modification process, and your information was lost, communicating directly with the bank can be frustrating. We’ve heard that some lenders will simply tell the homeowner that there is nothing they can do since they don’t have any record of the loan mod, but this simply is not true.
Rather than spend hours every day arguing with a mortgage company that isn’t budging, our mortgage attorneys can help you get the results you need much faster. We fight mortgage companies that do not honor agreements with their lenders, and have an extremely high success rate at doing so. Don’t let them bully you and push you around when you don’t have to.
Contact a Mortgage Attorney Today
We know that you probably don’t want to get lawyers involved – the legal system can be frustrating too! That being said, we know how to get the results you deserve, and can start working on your case today. Call to speak with a mortgage attorney for your free consultation today.