Why does it take years to get approved for a loan modification?  Does it really take 8 submissions of financial asset/expense sheets and payroll information of a steady income to prove that a consumer is eligible for a trial payment plan and/or modification?  The answers are simple, and yet little has been done to ease these problems. Your loan modification single point of contact has changed numerous times, causing confusion and complicating the direct line of communication with the servicer. Loan modification representatives do not log notes or updates concerning their communication with consumers.  They merely, and only occasionally, track the dates of the calls. Servicers, if they return your calls, do so untimely and have a penchant for losing financial documents.  Your loan might be assigned to another mortgage company during the modification process, thus creating a recycle of the modification process (if approved) or halting the process altogether. Servicers such as Bank of America, Wells Fargo, Chase, Ocwen Loan Servicing, and CitiMortgage have financial incentives to delay the modification process rather than help consumers by modifying their loans.

Even with the Consumer Financial Protection Bureau’s implementation of Regulation X, servicers, law firms, and courts move forward with foreclosure while the consumer’s modification is complete or completed and under review with the underwriter (known as “dual tracking”).  Who is the underwriter?  A consumer does not know and has no opportunity to talk directly to the underwriter.  A consumer does however talk to his or her loan modification representative who gets information from an underwriter and usually does not know how to interpret what the underwriter actually “needs.”  This causes tiresome delay, confusion, frustration, and a high volume of duplicative documents, all of which is understandably frustrating to a homeowner who is eager to move on with his or her life and pay his or her mortgage at a reasonable amount and interest rate.  If approved for a loan modification, the battle still continues.  Servicers won’t hold up their end of the bargain, and consumers have to take more time and financial risks to get their attention.

For more information and examples of the above issues facing the loan modification process, please click on the links below: