Do the Servicers of Mortgage Give Preference to Foreclosures?
When the foreclosure crisis made its debut experts in personal finance put pressure on the homeowners to open communications with their lender if they defaulted. The house owners were made to believe that the lenders would do their best to skirt foreclosure. But now the experts are not sure and singing a different tune.
The borrowers who have gone through a maze of formalities to try and modify their loans are not sure that this line of thinking was correct. Jason of San Diego was one of them. He bemoaned to ConsumerAffairs.com, “I have gone through the modification process but have been denied, although no clear explanation was provided. I have been seeking assistance and guidance from quite a few bank representatives and have only received rude, misguided information.”
In 2008 hundreds of complaints have been received by ConsumerAffairs.com. The general complaint was that those who had opted for loan modification and adhered to all the instructions found that their papers disappeared into a black hole. Maria of Sussex (New Jersey) said, “I faxed papers repeated times and was told that I need to fax more or that they never received them so they can start a modification. I made payments and they never credited my account. Now they calls in October 2009 and they tell me that they stopped the modification because I never faxed out the papers. Is this a joke?”
The story is a repeat everywhere irrespective of who the servicer is. Consumers start walking down the road hopeful of modification but they come up against a blank wall of inefficiency combined with total indifference erected at the end by the mortgage firm. Another sufferer is Regina of Whitefish Bay (Wisconsin). She said, “We sent all information requested by certified mail. As the others have described, we have had to make contact. They do not respond. The usual answer is ‘Whoever told you that is wrong.’ I actually have a tape of one of their agents stating ‘I can’t be responsible for what someone else told you.’ Should not they be required to respond in writing? Is this not a government funded program?”
In March 2009 the Treasury under the Obama government started a loan modification programme to give incentives to the servicers so that they modify the loans in trouble so as to prevent foreclosure. But the speed was so slow and frustrating that it has not had any noticeable impact. Foreclosures are continuing apace as before.
Some reports are suggesting that despite the incentives the servicers gain more from foreclosures than from modification. Servicers, unlike lenders do not have money at stake in the mortgage loans.
Related Posts
- Despite Incentives Offered to Servicers Foreclosures Continue
- New Foreclosure Relief Programme Showing Results
- Modifications Egging Re-Defaults Leading to Foreclosures
- Servicers Seem to be Repeating the Same Blunders That Led to the Foreclosure Crisis
- Servicers Do Not Have Much Power To Avert Foreclosure
