Yippee...A Homeowner is saved from Foreclosure after the Loan Modification was Denied.

I've been working with a client for a while on his loan modification.  After several modification package submittals and many phone calls, my seller receives a letter stating that the seller's modification was denied due to their monthly income. Mind you, when my seller applied, he was the only one working and there was definitely a financial hardship.  Plus he had mounting medical bills from a family member's medical care. 

Anyway, they send the denial letter one day and then the very next day, they send the Foreclosure Letter.  What is going on?? I ask.  He contacted me on a Monday and the home was suppose to be foreclosed on that Tuesday.  I immediately tell him to get back on the phone with the servicing company and demand to speak with a supervisor.  Of course he gets the runaround from customer service and the loss mitigator, to no avail.  I then give him links and information about the "Making Home Affordable" Program and how lenders are not suppose to be foreclosing on sellers that would like to remain in their homes. 

Armed with that information and the phone numbers and emails of a couple of top executives, we called the foreclosing attorney's office, the top level execs and the loss mitigation dept.  We also faxed everyone the info about the "Making Home Affordable" guidelines as well another hardship letter.

Within 30 minutes, we get a call from the original loss mitigator stating that the lender has decided to review my seller's file again and that they would get back to them in two weeks with either the option of reducing their interest rate or reducing their monthly payments and adding the past due amount to the end of the loans. 

We were ecstatic.  We could not believe it!!  It just goes to show you that a lot of these servicing company employees have no idea about the new regulations or they don't care.  It also shows that homeowners need to do their research and perhaps have an experienced professional by their sides to help them through the modification process.

Good Luck to all of you on your modifications.

MeLisa Minter

www.homesmint2be.com