Heavy Hand Loan Mod

I have spoken with the mortgage company and they will not budge on my ARM interest rate, and want to charge me 1800.00 by Nov 7, another 1800 on Dec 7th and then another 1800 on January 7th. At that time they will review to see if I am eligible for negotiation on my rate. If they deem me eligible, they will lower the rate some and lock it for 5 years, in which I cannot ever default or they will foreclose immediately.

This company was not our original lender, our loan was transferred to them, and they would not return any calls for the last 2-1/2 months when I tried to reach someone to see if we could work something out before I missed a payment. They are also not on the list of lendors for FHA or HUD loans offered to help consumers now. The only other option given to me was to shortsell and move somewhere to rent, if at all possible. My wife, young child and I do not want to lose our home, but this lender will not work with us.

Do you  have any suggestions on how we can keep our home?

Gary

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Hello Gary,

I would suggest finding errors in the loan docs and once found, that would add a heavy hand to your negotiations.  For example, a recent case in Serfass v. CIT Group found that lender’s failure to properly respond to a Qualified Written Request resulted in a bill for the lender of $19,500 for the borrowers attorney fees.  A successful TILA action also awards attorney fees and in some cases, the loan may be eligible for rescission. 

Read: Qualified Written Request, Sayest Thou What Oh Lender? & Who’s My Lender

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.