I have been trying to work with my mortgage company to achieve a loan modification since 2012. When I applied the first time both my husband and I had been laid off and our only source of consistent income for our family of 4, was husbands unemployment income of $277 net a week. (I was a 1099 so could not apply.) At this point we were 4 months behind on our mortgage. After the legendary "lost documents" excuses that drug on for 3 months we were denied a modification stating DEFAULT NOT IMMINENT. We were told via email that to qualify we needed a secondary hardship (death, disability or divorce.) We had $0 in savings, one 2004 paid off vehicle and no appreciable assets. Which brings me to my first question... How is NO INCOME not enough?
Since then we have applied a number of times and have finally been offered a modification. It's just under our original payment. We have to answer by November 1st. I have been in contact with NACA and our congressional office and both have viewed my documentation and have advised that we may well have a regulatory complaint with our servicer US Bank. Which leads me to my second question... CAN and HOW does someone in our financial situation take on a National Bank?
As of 10/18/ 2013 - We have now directly approached Freddie Mack and we have been told by our NACA rep that we should have an answer from them regarding a possibly better modification option. Any of you "smart guys" out there want to take on US Bank NA?
1 Answer from Attorneys
The problems (at least, some of them) are that there is often/usually no actual claim for damages for regulatory violations. There is also no general legal right to a modification that applies across the board. Finally (and sorry to be so blunt), the smartest lawyers know that cases like this end up being hours and hours of pro bono work. That is not to say you don't have a valid complaint - just the practical reality. Keep trying, but in the long term, don't put a lot of money in something unless it is going to be something that you can keep in the long run.
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