Loan Modification Taking Too Long…Need Advice!!?

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Hello,

I’m currently doing a loan modification. I hired an attorney-backed company six months ago to handle the matter for us. So far, we have been VERY displeased with the service.

Long story short, we own two properties. The lender is GMAC. One property (our investment) has already been modified as of three weeks ago. The second one is taking forever!

I had entrusted that the company was doing their job. However, six months later, we’re getting nowhere it seems like. Basically GMAC asks for financials, we fax it right away to our loan modification company, then we later found out GMAC never received them for whatever reason. And according to the loan mod firm, GMAC keeps losing our paperwork!

When I signed the contract with the loan mod company, we were current on all payments. Now, six months later, my property that I currently live in just had a Notice of Default filed last weekend!

I forwarded this information to the loan mod company. Apparently the loan mod company failed to include both mortgage account numbers in the financial info they faxed over to GMAC over a month ago. So therefore, the faxed info only got applied to my other account which is the one that was just modified and not my owner occupied residence which is why we’re still struggling to get it modified. So the loan mod co refaxed it to them about three weeks ago. And we were told it would be 15 working days before we get any answers.

Yesterday, we find out that they never got the fax!!! So I’m now 90 days away from foreclosure. And I just spoke to GMAC and since my property taxes are late, they are now applying for an escrow account. They said at this point, it should be another 4-6 weeks total before we get an end result.

So as you can see, it’s been nothing but delay after delay after delay. The loan mod company is not doing their job in following up with GMAC to make sure they got the paperwork.

I’m worried sick to my stomach. I don’t want to lose my home, especially due to someone else’s stupid mistakes!! I can no longer trust the loan mod company to do the right thing for us. They assure us they’re doing everything within their power and that some loans take longer than others. Just depends. In my opinion, it should have never taken this long! It is very obvious to me that it was due to their lack of following up with GMAC that things are taking forever! Six months and no loan mod yet!!! Ridiculous!

We are perfect candidates in every way. If done properly, I know for a fact that we will get a mod. Basically my question is, now that I have an NOD and it could still potentially take 45 more days for the loan to be modified and not trusting the current company that’s handling my loan, should I seek another attorney? Should I just stay persistent and make sure everything is being handled? I’m at a total loss here.

I heard that GMAC is helping just about everybody out. My biggest worry now is that we’re now 90-100 days away from foreclosure. Just need to make sure our situation is being handled properly in the right hands. Please advise!!
try2help, wow, you nailed it right on the head!! Thank you for your input! I am embarrassed to admit, but I am a loan officer. Well, I am going back to my career for now which is more profitable nowadays for me. Just closed my last FHA loan last week.

Basically lots of my clients were coming to me saying their lenders were of no help to them when their loan recasted. So therefore, I felt I should hire an attorney-backed loan mod firm to have the experts do the job…..WRONG!!

I have a mortgage background. And now that I’ve stepped in, I see it’s nowhere near as difficult as I’ve heard from others. In fact, I now regret not taking this step myself!! I know I could have done it myself! I just hope it’s not too late!!!!!
Landlord, I do blame the company in part for all this. Yes, I understand what you’re saying. But since we did pay a hefty up-front fee, we expected better service than this. If the bank did not receive a fax…..THEN WHY IS IT TAKING THE LOAN COMPANY THREE WEEKS TO FIND THIS OUT EACH AND EVERY TIME?? Every time I talk with GMAC, they say it takes 72 hours to upload any faxes into their system. Why is the loan mod company finding out three weeks later? Because they’re not doing their job in properly following up on anything they fax over to GMAC. So now, I’m stepping in to make sure they ARE receiving what they need and get this over with before I lose my home!

3 Comments
  1. Reply
    try2help
    February 8, 2011 at 11:58 pm

    First mistake hiring loan mod co. for something you can do yourself. They have just been banned in Fl. unless they get modification, and cust. satisfied, they can get a fee after completion of services. So, if you have given them any money immediately demand a refund, if they don’t produce then complain hard and fast to attny general in your state. Next follow up on the loan mod yourself DAILY if you have to. Modification co. will say you violated rules, big deal, save property and deal w/these crooks later.

    The banks are dealing w/hundreds of cases like yours , you have to stay after them daily asking for a manager, or supervisor. Your hiring the loan mod co. is the problem, eventually they will tell you to file bankruptcy, their thing is to just get as much up front fees as possible, they can’t possibly handle all the cases they take on. I worked for one of them eventually shut down, by authorities, what an experience, left after three weeks.

    Get on the ball quickly, yourself, and daily. Then get after the crooks, if they took any upfront fees.

  2. Reply
    Landlord
    February 9, 2011 at 12:40 am

    I did not read this entire novel.

    However I can tell you, this is not the companies fault. The banks have everything spread out all over the friggin’ place. Expect to fax anything to them at least 3 times.

  3. Reply
    LoanMod
    May 25, 2011 at 10:53 am

    Hello,

    I just read everything you wrote. Never EVER hire a Loan Mod. Company to do your mortgage Mod. They don’t know the laws and aren’t creditable and they don’t negotiate with the lenders as they let the lenders wear the pants. The other issue with these companies are that they take your money and don’t do what they promise. Also, never do a loan mod. yourself as their are far bigger failures in this process as banks will always say they never received your doc’s. They will make you go into foreclosure on your home. Always hire an attorney who practices in this particular field and know the HAMP program and laws. They will make banks do their jobs on your behalf!

    Also, many banks are under staffed, not trained and don’t care so that is why you need a lawyer and not a loan mod. company to help!

    My husband and I did a lot of research on the HAMP program and also read many things about people filling it themselves. I decided to look for a lawyer that practices in this field. Of course you have to pay for their services but most lawyers will do a payment plan for you. Our loan has passed the negotiator at BOA and was suppose to be at the underwriter a while ago which BOA are being Aholes and dropped the ball on my lawyer saying that it never was sent to the underwriter. He said he hit the roof when he heard this but he escalated our file to the president and assigned our file to an advocate. Of course BOA wants updated doc’s (once again for the millionth time) so that the underwriter can see there hasn’t been any changes. Our lawyer said this was a good thing that they are asking. Also, I am not sure what type of loan you have but we have an FHA loan and my lawyer said that this needs to get done ASAP since we cannot hit the 12 month mark with an FHA loan. If that happens…we are SOL and will have to continue to make our normal regular mortgage payments on a house that is 60K underwater!

    I know I am many months late on this topic but hope it can help others that read this!

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