Wednesday, August 2, 2017

Common Violations Lenders Make During Mortgage Modifications

Everyone makes mistakes, and most mistakes can be fixed. But when the mistake has an impact on your daily finances, you need a remedy sooner rather than later. One area where mistakes that affect your finances are made is the area of mortgage loan modifications. Most lenders work diligently to get the process completed in a reasonable time frame and without error, but that is not to say that every request for modification goes off without a hitch. Mistakes are made, and even worse sometimes, the lender commits a violation of what is required. When that happens you have to call the lender out for their violation, and work to make it right.

Common violations lenders make during mortgage modifications include:

         Unreasonable delays in processing the application and other paperwork. Too many homeowners have seen their request for modification take an extraordinarily long time to complete. Your lender should not drag their feet or fail to mention that there are other items needed in order to complete the review. If you are not made aware of documentation that is missing within about 5 days of submission, your lender is not acting in good faith.
         Requesting duplicate documents. This goes hand in hand with delay and is a big no-no. Your lender should not continue to ask you for the same documents over and over. Doing so can put your request in jeopardy and prolong the process.
         Continue to foreclose on your home. This is called dual tracking and it is not permitted. A decision regarding the modification must be reached and given to you before a lender resumes a foreclosure action.
         Advising homeowners they have to be in default in order to qualify for a modification. This is simply not part of the process and it is a violation for the lender to provide you with this information.
You should also not have to remit a down payment or sign any modification documents that waive any of your legal rights. This can be tricky if you don’t know what language to look for, but we can help. Legal terminology is hard to understand, but we have the legal experience and know-how needed to relay these terms to you in a way that makes sense. Call us today for help modifying your mortgage.

For more information about mortgage modifications, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.



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