Another Reason To Have An Attorney – Loan Mods Are Hard

Here is a recent article that describes some of the difficulties with the loan modification program. Many homeowners have been denied. I think this is another reason why having an attorney can help.

Lenders and servicers cannot get away with some of the things they try to pull when the homeowner has an attorney. I have seen lenders routinely make mistakes in processing applications, assign unqualified individuals to handle intake and document verification, lose documents, and allow documents to become “stale” while interest accrues, only to ask for updated documents again. My firm currently has a contempt motion pending against one lender for this type of bad faith conduct. Last week, one of our clients received a letter directly from his lender inviting him to submit an application after we had already submitted a complete package and attended a mandatory court conference with the bank’s counsel. I view the lender’s letter to our client as bad faith and evidence that the lender has not processed the application. This is just one example of what we see. I believe that many homeowners are denied because they do not have legal counsel to confront the lender when these types of problems occur. Counsel can also advise a homeowner about other legal options.