Anyone who has attempted to get a mortgage
loan modification probably has a story to tell. Most of those stories will involve the maze
of paperwork and red tape required to obtain a loan modification. Lost
paperwork, incorrect data, and general incompetence will be the main themes.
Reuters has a
new report highlighting the continued problems that homeowners face when attempting
to obtain a loan modification. One story includes one arm of Bank of America
assisting a homeowner with appealing a denied modification, while two
other arms were sending her letters with two different reasons for denying
the modification. Her four-year attempt at securing a modification reamains
The other stories are more of the same -- lost documents, inconsistent
reasons for denial, and "the investor said no." Given all of
this, why even try to get a loan modification? For some people, the reason
is simple -- "I love my home." The value that you attribute
to your home is often greater than what the market would actually bear
for your home. However, sentimental attachment seems to be one of the
biggest factors for people seeking loan modifications.
If your home is significantly underwater, keeping it is most likely a bad
investment. Lenders are not handing out principal reductions for the most
part, so most loan modifications don't address this problem. Although
you can retain a Chicago foreclosure defense attorney to assist you with
loss mitigation and loan modification, sometimes letting a home go is
a better choice than enduring the grind of obtaining a loan modification.
It is possible to exit your home with dignity and without any further liability.
It is also possible to fight your foreclosure as long as you can and hope
for a loan modification. The choice is ultimately yours. No matter what
you choose, make an informed decision. This may mean hearing some things
that you don't want to hear, maybe even finding out that your best
choice is a consent foreclosure or surrendering the home in bankruptcy.
You'd think that three years into the foreclosure crisis, lenders would
have figured out how to make the loan modification process easier. All
they have done is add more uncertainty to an already uncertain situation.