Horizon Bank is one of the many lenders currently required participating in President Obama’s Home Affordable Modification Plan. As a plan participant, the lender is eligible to receive incentives from the federal government for the modification of home mortgage loans. Even with these incentives, however, the lender still refuses to modify loans on a regular basis. While it can only be expected that some modification requests will be rejected over time, the lender continues to deny loan modification requests for borrowers who feel they are deserving of a modification and who meet all of the requirements established by the federal government.
When a person feels that they have been unjustly denied for a loan modification plan offered by Horizon Bank, the borrower has certain actions they may take against the lender. Through a process known as mortgage litigation, the borrower can take their lender to court in an attempt to force Horizon Bank to modify their loan. While the case is in litigation, that is before any verdict has been delivered, Horizon Bank would be required to cease all foreclosure attempts and must not attempt to collect monthly mortgage payments from the borrower.
While it is entirely possible and legal for a borrower to represent themselves in litigation, this is never recommended. A person simply has too much riding on the outcome of a court decision to allow amateur mistakes to be the cause of their downfall. When a borrower is fighting Horizon Bank to keep their home, a professional should be used to represent the borrower. Horizon Bank has no doubt invested hundreds of thousands of dollars over the years to ensure that their legal team is top notch, and it will probably be a legal team that would rip the borrower’s case to shreds without the help of an attorney to level the playing field.
Depending on the decision of the court, the borrower may be able to avoid foreclosure, win a loan modification, and be allowed to have some of their debt from mortgage fees forgiven.
Mortgage litigation wouldn’t be necessary if lenders like Horizon Bank were able to give each of their borrowers the attention they deserve, but they simply aren’t able to. Many borrowers who are denied a loan modification complain that their lenders offered little to no assistance before the denial and in essence blame their lenders for not being more proactive. Horror stories from some borrowers include tales of lost documents, dropped calls, and rude customer service agents. These are all factors that are out of the borrower’s control, yet still affect the borrower in a big way. If any borrowers of Horizon Bank can relate to those horror stories and have been denied for a loan modification, chances are that mortgage litigation would be of some benefit to the borrower.
As always, borrowers should consult with a local foreclosure attorney before making any decisions on a matter as important as their original mortgage contract. An attorney will be able to review the facts of a case to ensure that a solid case even exists.