25 Aug Loan modification craters
Loan modification is an obvious alternative to foreclosures that leave banks owning lots of houses. Banks get a loan that is performing, even if at a lower dollar value and borrowers stay in their homes. One would think that truism would have penetrated the corporate thinking of lenders. However, I have no evidence in support of that proposition.
I wrote earlier about a client who had actually been offered a loan modification, the first one I had actually seen. When the final papers arrived for signature, they came burdened with new and impossible conditions: the borrower was to pay off IRS liens junior to the loan being modified and was to obtain the signature of officers of the two junior mortgage lenders, agreeing to the modification. Huh?
The best one can say for this fiasco is that the entity handling the loan modification is understaffed or under prepared. I can’t find that the lender’s offer has worsened my client’s position, but in the end, the problem is unsolved. Bankruptcy undoubtedly awaits.
Cathy Moran, Esq.
Latest posts by Cathy Moran, Esq. (see all)
- Can You Afford The Cost Of Waiting? - November 10, 2013
- Lost IQ: The True Cost Of Just Paying The Credit Card Minimum - October 10, 2013
- Getting Rid Of Tax Liens After Bankruptcy - September 10, 2013
- Why The Information You Give Your Bankruptcy Lawyer Has A Sell-By Date - August 27, 2013
- Super Heroes Fight Debt - August 10, 2013