Mortgage Modifications & other Myths...

I have known that a credit score is important for a variety of reasons. I have been diligent over the years to keep it clean and in good standing. Here's the interesting thing about lenders. They have some really weird guidelines. They refuse to let anyone apply for a mortgage modification until they are NINETY days late on their mortgage. Now what kind of sense does that make? They won't even consider a modification if I'm in good standing? So, in order to play the game it requires the players to make a decision about ruining their credit. Seems crazy doesn't it?

And the modification process takes a long time. I've been in the process for nearly a year and I still don't know if I will get it. I'm in a different situation than most as I have had virtually no income for a few years. I could completely understand if I did not qualify. However, there are thousands of people who SHOULD qualify because they have an income but the banks are just toying with them.

Wouldn't it be in the banks best interest to work with individuals who have a proven history of making payments? Communicating with each and every lender ( I have dealings with 7 different lenders) is a difficult and arduous process. The worst is when I cannot understand the person on the other line due to a heavy accent. YIKES! Isn't this America? And they continue to read the script to me on every single call. No one is taking notes on my files it seems  and according to them, it is virtually impossible to call the same representative to talk about my case. Why is it so difficult?

I have relatively thick skin and I understand more than most how the lending process works. Lenders were so quick to issue loans and one would think they would be just as quick to NOT foreclose on people. I certainly don't want to lose my house however I completely understand if it happens. I have been late on my mortgage. Here's where it gets complicated. There is a process that lenders need to follow when foreclosing on a home and my guess is that they have taken a God like stand to behave however they choose.

Because of the fact the most individuals do not understand their rights and don't have the time or energy it takes to be in communication with their lender they just give up and let the house go back. Obviously the past several years have been financially challenging for the majority of people in America. Part of the problem was easy credit which the banks were eager to participate in. Now that money is tight they have virtually turned their backs on working out ways for people to stay in their homes.

I have a friend who moved out of her house because the bank was going to foreclose. This was AFTER she had applied for a modification. They kept losing her paper work and denied her a modification initially. She moved into an apartment with her two big dogs and the lender KEPT CALLING! When they realized she was no longer living in the house, according to their guidelines, they would not even consider a modification. So, she moved back into the house which would give her a greater chance of a modification. To top it off she has had a steady stream of income which was the reason she initially fell behind. Seriously? Imagine moving out and then moving back with all the labor of the actual moving, changing  utilities, packing & unpacking etc. Why are the banks allowed to get away with this?

Ideally I would like to band together and help people who don't understand the process. Ultimately I want the banks to operate in a humane & legal manner. Perhaps a class action law suit would force them to behave appropriately. I know it has been done in other states. Is it worth the fight? That's the question...