I was going to talk to you today about another aspect of loan modification, a lot of clients come to us with loan modification horror stories, if you will. They’ve been working on their loan modification for months and months if not years and they’re on that hamster wheel where they’re just providing documents every month, they’re giving the lender everything they ask for or they’re doing everything that’s been asked of them and they’re just getting nowhere. The lender gives them the runaround, loses documents, never calls back or worse yet, they call the lender and there’s no one to talk to, there’s no single point of contact. A lot of that is actually illegal under California Law.
In 2013, in California, the legislature passed what’s called the Home Owner’s Bill of Rights to protect home owners, borrowers, consumers like you from a lot of this rampant wrongdoing and incompetence, frankly, on behalf of lenders. In a nutshell, the home owners bill of right, it is long and detailed and obviously I have to oversimplify things to make a video about it but in the long run, I feel like it’s better for you to just have some general information about your rights so understand what’s happening. In a nutshell, I would say a good way to summarize it is that lenders are not allowed to lie to you, to mislead you, to give you false information, and essentially they’ll just give you the endless runaround. So that hamster wheel is part of the issue.
One big thing that’s probably happening to you that happens to just about everyone is this issue with the single point of contact. Under the home owners bill of rights, you are not entitled to an actual loan modification but you are entitled to what’s called a Single Point of Contact, meaning when you call the lender, you should or you’re supposed to be able to speak to the same person every time, not this endless parade of different loss mitigation people who have no history or no information about your situation they’re coming to it brand new that day, so your single point of contact is an important aspect of the home owners bill of rights.
The other thing that’s just more general than specific but is just misrepresentations. It’s unlawful for your lender to make misrepresentations to you about the status of your loan modification, what to do. A real prime example is for a long time, lenders were telling borrowers, “Hey, you need to start missing payments or we’re not going to be able to do anything for you”. So that sort of falls into the misrepresentation, a bad advice category. It’s definitely something we can sue your lender for because essentially, they are the ones who caused you to default in the first place by suggesting and advising you to stop making your mortgage payments. Of course you want to work with him, you listen and they say “Stop making payments”, you think, “Well, I am talking to the actual horse’s mouth and so I guess I’ll do what they’re telling me to”, and in the end, that strategy creates a lot more trouble than good and so those are things that we can definitely use in a lawsuit to try to enforce your rights and get you the loan modification you’re looking for.
To summarize and the short version of this whole thing is they shouldn’t be lying to you, they shouldn’t be misrepresenting your situation, you should have a single point of contact, someone that you’re able to speak to every time you call in so you’re not just bounced around everywhere, and you should have a general idea of where you are in the process. If any of those things have been happening to you or you feel like your rights are being violated, it’s a great idea to at the very least go speak to a foreclosure attorney, someone who lives this stuff every day, someone who actually litigates cases.
There are a few of us out there who can sue the lender for you, and that may be just the leverage you need to put you over the top to actually get the favorable loan modification with a predictable permanent payment that’s not going to change and no surprises down the road. A loan modification will give you an actual contract, new contract with the lender on what your payment’s going to be and as long as you stick with that, you shouldn’t have any trouble going forward in the future.
So if you need to speak to someone about loan modification, we’re always happy to talk to clients. If you have another question or something you’d like more detail on, just leave it in the comments section below the video and I’ll try to make a video for you. I’m always looking for ideas or find out what specific concerns I can address for people out there struggling with these types of things. So thanks for listening to my video; talk again soon.
For more information on Loan Modification HBOR Rights, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 728-0044 today.