I thought banks were supposed be more user-friendly when it comes to applying for a loan modification.
There have been lawsuits against the big banks that have resulted in settlements and promises of fixing all of the problems consumers were having when applying for a loan modification. There have been programs like HAMP and the establishment of the Consumer Finance Protection Bureau. As a lawyer in the trenches trying to assist clients applying for loan modifications, I find the process more frustrating than ever. The following is a list of what I have encountered lately:
- Lender tells me I am not authorized to speak on behalf of my client even though I sent in an authorization and they were permitted to speak to me the week before.
- Lender requiring a CPA to sign off on a Profit and Loss statement from a client that owns a small business.
- Lenders refusing to disclose guidelines to other modification programs if client does not qualify for HAMP. That way if they say the client is not eligible, they don’t have to prove it because no one, other than them, knows the guidelines.
- Lenders using ratios that make no sense as an excuse to deny clients a loan modification. The latest one I encountered was that the ratio of the potential lower payment to income was not 10% lower than the ratio of the current payment to income. What the hell does that mean?
One thing is for sure, I will not stop fighting these absurd and unreasonable roadblocks put up by lenders … These Loan Modifications Continue to Frustrate.