The Loan Modification Department Lost My File . . .

Hearing a bank tell us that they don’t have the papers has become a standard part of our firm’s loan modification / loss mitigation practice. It’s either, “we didn’t get your fax”, or “we cannot locate the file” and even sometimes they admit they “lost the file.”

Banks appear to be understaffed and ill-equipped to handle the influx of new loan mod work this past year. Banks also tell us that the authorization that was faxed in “has not posted yet.” What does that mean exactly? No one really knows. I envision a box with a bunch of faxes sitting on someone’s desk that no one has looked at yet. The entire process is cumbersome and usually we send in the documents more than once. We have also had banks call clients directly and tell them that their loan mod papers have not been received – after we already sent them in to the bank and have a fax confirmation to prove it.

The bank loan mod departments also have a rotating group of representatives who talk on the phone. This makes it difficult because with most lenders you do not usually speak to the same person that you may have spoken to the week before.

Last week, I attended another loss mitigation settlement conference in the Supreme Court in Brooklyn (Kings County) and appeared before a JHO with a client. The client was HAMP eligible and we are working to help her modify her loan and save her home from foreclosure. The Judge stated that she was so sick of hearing that the bank never got the fax or lost the fax. I had to smile at hearing that from the Judge. She suggested that we send our papers to the bank’s lawyers instead by fax and certified mail and call to follow up. She directed the bank attorney to give me a fax and phone number to call their paralegal for this purpose. That is one benefit of trying to modify through the court – at least you can deal with the law firm on the other side.

The entire process can take months. Clients find it very frustrating to do this on their own and most are not familiar with the court or its procedures. Many come to me after trying this on their own without even getting a response from their lender.

If you find that you need help trying to modify your loan in or out of court, please feel free to call me for a free phone consult at 212-764-7250 x201 or email me at [email protected]. There is also a Free Consult form link to the right on this webpage.