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Bankers, can we have more open and transparent loan modifications?

By
Real Estate Agent with Emeco Property Solutions, LLC

NJ Loan modifications have become a joke. People get turned down for no reason at all.

People really want to keep their home, but just can't figure out what to do. The loan modification negotiators realize how desperate the homeowners are. They use their power over the person to take an ego trip.

Banker to Homeowner, "You Pay Up!"

"I'm going to make this person beg me personally for their loan modification", they think to themselves. Everything becomes a competition between negotiators on who can squeeze more out of people.

They talk to their fellow negotiators about what they are able to force people to do. "I saw that one lady had $100 a month for entertainment on her financial statement. I told her she didn't deserve money for entertainment when she owed money to us", they say to them.

Meanwhile, the other negotiator tells their story. "One couple had $200 a month on their financial statement to give to their church. As soon as I saw that, I increased the payment by $200"!

Yes, power does corrupt. These loan modification negotiators hold they keys to the homeowners future staying in their home.

Here is what needs to be added to the Homeowner's Bill of Rights.

1. Whenever a homeowner is turned down for a loan modification, the lender shall give them a written, coherent response along with the reason they were turned down. It needs to specifically detailed why they were denied and what they can do to be approved.

2. Homeowners are given all the guidelines at the beginning of the loan modification process. They should receive the same guidelines the loan modification negotiator receives. That way they can make sure that they aren't lying to them.

Thanks for reading this, Merydith Endelman.

Merydith is a Real Estate agent at Realty Executives International.

Phone: 877-722-8553. merydith.endelman@gmail.com.

Show All Comments Sort:
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Couldn't agree more!  Especially with the big box lenders.  I'm an attorney and I know a bunch of clients who are actually suing the lenders for failure to disclose.

Dec 09, 2010 03:41 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Most of the short sales I list are failed loan modifications. Once the loan mod fails the banks back charge the homeowners many thousands of dollars even though they diligently paid the agreed upon trial payments.

Dec 09, 2010 03:55 PM