One of the most frustrating aspects of the entire foreclosure experience is the fact that a bank is involved. So many problems would simply be solved if there was no bank to deal with. Unfortunately, this would make foreclosures virtually disappear overnight, a scenario that most lenders who extort billions of dollars from their victims would find horrifying in the extreme.
But this doesn’t eliminate the fact that it’s nearly impossible to get lender representatives to call someone, whether it’s to approve a loan modification or other plan or issue a brief denial. For one reason or another, mortgage companies are quite capable of incessantly calling homeowners who are behind on their payments, but equally incapable of returning a phone call to these same foreclosure victims when they are trying to find a solution.
The irony of the situation defies logic and is unbelievable: Lenders try to contact their customers to get their money, but when offered a plan to get their money, they ignore the exact same customers for months, pushing them to the brink of death. loss. their houses up for a sheriff sale. Can anyone honestly determine, based solely on their actions, whether or not lenders want foreclosures?
But what should homeowners do in this situation? There are probably two main options you have to face in case the lender ignores your attempts to save the house from foreclosure. They may try to file a complaint with regulatory agencies or fight back in the court system.
Although there are numerous regulatory agencies that oversee the banking industry, most of them represent dead ends for homeowners. Complaining to the Federal Reserve system about a bank that is co-owned by the Fed reflects some conflicts of interest that will not be easily overcome. Furthermore, complaining to a government agency that receives its annual budget money from these big banks, via the Federal Reserve, will also result in quick disappointment for homeowners. No, there seems to be no agency that foreclosure victims can report the bank for not returning their phone call. On top of this, if the mortgage company called them back and told them that their modification or payment plan has been rejected, they still wouldn’t have anyone to complain to.
Not surprisingly, however, the lender’s loss mitigation specialist cannot return homeowners’ calls, as these lenders are notoriously incompetent and will wait until the last second, within days of the foreclosure auction, to tell them to their victims. that they did not submit all the correct documentation, the four-month documentation is not expired, the owners do not earn enough income or would not be able to qualify for the modification. The bank’s customer service representatives put it off as long as possible. Complaining, unfortunately, will net homeowners less than nothing and waste valuable time that could be used to find other methods to save a home.
Homeowners might make another almost equally futile attempt if they truly believe they might qualify for a plan from the lender. In this case, they would want to keep trying to get in touch with someone at the bank and try to talk to other people in the same department and explain that they haven’t had a phone call in 45 days or however long it has been. However, in most cases, they will simply be told who has their file, assured that they will receive a call, and then transferred back to voicemail.
The immense frustration homeowners experience when working with the bank is just one reason why they should have backup plans to stop foreclosure. Try to deal with the lender, but also try other options. There are professional firms that specialize in this type of loss mitigation negotiation and may have better contacts with the lender, and other firms can help with refinancing, working with investors, or filing bankruptcy to avoid foreclosure. Homeowners will just have to figure out the best ways to stop foreclosure for their situation, regardless of how the bank acts.
As a last resort, owners should go to court and request a hearing before the judge in the case. He can explain that they have been trying to work out a modification outside of the legal process, and were told they would get a response, and have not gotten one, despite having sent the lender all the required information and documents for months. behind. Now time is running out, and the lender must be forced to respond or the foreclosure process must be put on hold until they have figured out what is going on with the loan they are trying to foreclose on. The judge can order the lender to respond to the foreclosure victims, or not allow the mortgage company to conduct the foreclosure auction. That means keeping the sale date off the schedule entirely until the bank informs the owners whether or not they qualified for a training program.
Going to court this way may seem intimidating to the vast majority of foreclosure victims, but it shouldn’t be. The lender will not hesitate for a second to use the legal process in their favor, and owners who are ignorant of how the system works are one of the bank’s greatest strengths. However, court clerks can usually tell property owners what forms to fill out to request a hearing, as well as how to file them and when the hearing will be held.
Once the hearing date is set, foreclosure victims must absolutely make sure they can attend. Next, the most important point will be for homeowners to make sure they bring records of their calls to the lender requesting a response, as well as any documents they have submitted to complete the bank’s checklist for a restructuring plan, and explain that so far they have. You did not receive a response and you are wasting valuable time and the opportunity to work on other solutions by relying on the lender’s offer of possible solution plans.
Complaining to a regulatory agency about the bank’s lack of response will likely result in owners receiving a form letter saying the bank has been investigated and did nothing wrong. Regulatory agencies will have no recourse to provide direct help to homeowners anyway, and the foreclosure will proceed. But using the courts can force the bank to get its act together, or else they will have to pay their lawyers more and postpone the foreclosure.
Banks definitely don’t want to lose even more money in foreclosure than they already expect. Until banks are completely removed from the foreclosure process, which is not expected to be soon, the best recourse available to homeowners may be to find options to stop foreclosure that do not involve the bank, or to work through the system. court to force the bank. in competition.
