What If The Bank Won’t Work With Me On a Loan Modification? A borrower or a home owner submitting their documents and information and their request to their lender to try and get a more affordable payment, or to get out of a situation where they’ve fallen behind on payments. They may be 3 months, 6 months, a year behind on payments and they are asking their lender for some sort of relief. At the very least, re-capitalize the back payments onto the principal of the loan and allow them to start making payments again and ideally reduce the payments so it becomes more affordable. But what if the lender won’t work with you? What if you get to a point where the lender is just saying “No”, and you don’t feel like you’re getting a fair review?
The good news is California has passed laws about that exact situation. It’s contained in the Home Owner’s Bill of Rights from 2013, it’s still a good law and it essentially says the lender has to treat you fairly, the lender has to fully and transparently review any loan modification or request you make of them. So if the lender is just categorically refusing to work with you, that’s something you could sue them for and you should. There is a plenty of qualified foreclosure defense attorneys and real estate attorneys that may be able to file that lawsuit for you. If the lender is reviewing your documents and you don’t think they are doing it in a fair and transparent manner that also may be actionable. You may be able to file a lawsuit and get some good leverage and some good traction in a settlement to try and get that loan modification you’re looking for but definitely don’t give up.
That’s the biggest thing that people do and frankly, that’s what lenders want people to do is to get a little resistance, be told no a couple of times and then just throw in the towel and say “Okay, we’ll just leave the property and move on and assume our loan modification didn’t work out”. There are a lot of options you may not even be aware of so go see a foreclosure attorney, go see a real estate attorney, talk to someone who knows this area of the law because you may have a lot more options than you realize. So if the lender is not working with you on a loan modification, either you don’t have any income whatsoever and there is really not a lot anyone can do in that scenario, or they may not be reviewing you in a fair and transparent manner, which is something that you can definitely file a lawsuit for.
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