What’s Involved in a Mortgage Modifications

The economy looks like it is in an upswing and the markets are recovering from the housing crisis that began in 2008.  It has been reported that home foreclosures are down.  However, there are many people who are unemployed or underemployed and are having a hard time paying their mortgage.  It is easy to fall behind in paying the bills.

Once a person is three to six months behind in their monthly payments, their mortgage company contacts the homeowner to see whether they would be interested in applying for mortgage modification, usually by filling out a packet of paperwork.  In this packet are forms and the homeowner is asked for financial information including the borrower and co-borrower’s gross income and monthly expenses.  Also requested are 2 months’ worth of bank statements and sometimes the last filed income tax returns.

It can seem daunting to the average person to complete these forms, but it is something that is feasible.   However, the hard part of completing the modification process starts after the informational packet is mailed in.

According the settlement agreement signed by the five major banks, the US Government and 49 states, a bank representative called a Single Point of Contact (SPOC) is required to contact the homeowner within 72 hours of receiving the complete modification package.  The chain of problems starts here.  Usually, the SPOC does not contact the homeowner to let them know that a packet has been received; and an average person would wait to be contacted.  If the homeowner does take the initiative and call, they are usually told that there is something missing.  The homeowner then sends in what is missing and again waits to hear from the SPOC.  When again they inquire about the status of the modification, the client is usually told that the prior paperwork that had been sent has become stale and updated paperwork is required.  This is very frustrating, but when the client has to call the 800 number, input their personal information, only to be told that their SPOC is not available, people just want to give up on the process.  If they do get through, they are inevitably asked for additional documents to be sent in because they are “not in the system”.

This process would drive any person to give up on the system because they think that obtaining modification is impossible and the mortgage company is just interested in playing games.   This is where we come in.  Retaining Mr. Schroeder as your attorney gives you the backing of an attorney and it makes the mortgage company less reluctant to play games.  If your home is in impending foreclosure there is usually a local law firm that represents your mortgage company, Mr. Schroeder can contact this law firm and deal with the problem- something that the homeowner is not able to do.

Retain the law firm of William D. Schroeder, Jr., to cut through the system’s problems, to call your SPOC during business hours, and make mortgage modification a solution for you.