A Bad Day in the Neighborhood!

I just found out some friend’s applied for a loan modification under the (new) Federal Program, after she was laid off.  My friends, let’s call them ‘D & C’, contacted their lender the day after she was let go.  They got the paperwork filled out, signed, and registered with the modification program and were faithful with their house payment.  C even contacted their mortgage holder monthly to check status of their modification.  She was told all is well and it is at the Underwriter’s each time she checked.  (Of course, she was never able to talk to the same person twice.)

About four months ago D & C received a letter from their mortgage company stating they were approximately $7 grand in arrears.  They contacted their mortgage company and were told the letter was a “mistake” and to not worry about it. They were also told they should skip making the next three or four payments to help their modification application along.  They declined to not make payments as they hadn’t missed any before.  C called again October 1 to check on their application and was given the same answer as before.  Then the mail came that afternoon after her call.

A foreclosure notice.  Their application was rejected and the mortgage company was preparing to file foreclosure papers on their home.  They are devastated, to say the least!  They did everything they were asked to do except skip payments – they didn’t think that would be very smart.  No answers from anyone contacted, so far, as to why the application was rejected.  They feel like their property is being stolen from them.  The payment was reduced by the mortgage company and signed and notarized by all parties to make it legal and yet they are told in the foreclosure notice they are $12K in arrears?  How is that possible?  They did not ask for their payment to be reduced, they applied for a loan modification, and the mortgage company voluntarily reduced the payment.  How can they come back and say “Oh, guess what?  Kings X!”  Their attorney just shrugged his shoulders and said “Oh well”…  My friend said it best: “Another American dream, murdered by a federal program.”

I wish I knew how to stop this abuse.  I know there is an election coming that might have an impact, but it will be too late for them.  The movers will be here in a few days.  I know I will shed a few more tears for them when I see the moving truck show up.  Our neighborhood will be poorer without them!

Sorry to butcher a quote from Mr. Rodgers: It’s a bad day in the neighborhood…

Published in: on October 9, 2010 at 12:03 pm  Leave a Comment  
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