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Anaheim Loan Modification Lawyers on the Problems Faced by Homeowners Seeking a Loan Workout

April 24, 2009

Thanks to the bad economy, we have done a lot of work in loan modifications lately at Howard Law LLP. Our Buena Park loan modification attorneys have heard a lot of horror stories from clients who come to us after trying to negotiate their own loan modification without professional help. Many of them say they were ignored or given the runaround by their lenders, despite repeated calls. Others told us that they did get loan modifications -- but the proposed changes would actually have left them worse off than before. And some have even told us that one branch of the bank was foreclosing on their homes while another was negotiating a loan workout with them. It's only after they hire our Lakewood loan modification lawyers that they manage to cut through this bad communication and get changes to their loans that actually help them avoid foreclosure.

That's why CNNMoney's recent series of profiles on real-life homeowners facing foreclosure struck a chord with us. Entitled "Tough Workouts," the series details some of the difficulties faced by homeowners who took the bank's advice to try working out a loan modification themselves. It starts with the story of the Wright family in Las Vegas, who were told to go into default before they would be granted a workout. Sue Wright stopped paying the mortgage, then applied for and received a loan modification that lowered her interest rate -- only to have it rescinded because investors wouldn't approve it. Wright's mortgage had been securitized, but she didn't even know it until the workout was rejected. With home prices dropping and sales stagnant in Las Vegas, the bank stands to lose $200,000 if it forecloses on the Wrights, who have lived in their home for 15 years.

Another profiled homeowner was Raul Medina of New Jersey, a minister and former landscaper who was wheelchair-bound in an auto accident and can no longer work. Medina purchased his own home as well as another that his church uses as a homeless shelter. Friends trying to help Medina got bounced from department to department and given conflicting stories for nine months. When they offered the bank a short sale, it delayed its response for six months and the deal fell through. An offer from an insurer to modify his home to accommodate his wheelchair also fell through after the bank refused to offer any loan modification at all. With his income down, Medina is at risk of losing his home because he cannot get current on his mortgage payments.

A third profile focused on retirees Pati and Richard Kays of Florida. Richard Kays has a rental property in California with an adjustable-rate mortgage. When its interest rate reset, he could no longer make the payments. He contacted his lender to work out a loan modification -- only to be told he's not distressed enough to qualify. And because he lives off a pension and Social Security, he was told he didn't qualify for a refinancing either. He is now trying to sell the couple's Florida home to pay off the California mortgage, but the market there is so bad that even a $200,000 price drop has not attracted a buyer.

Lenders and many media outlets tell homeowners they don't need professional help getting a loan modified -- but as these three homeowners can testify, that's not quite true. Our Garden Grove loan modification attorneys specialize in helping homeowners break through that red tape and get modifications that allow them to stay in their homes. We understand your legal rights, and we understand how lenders may have violated those rights -- evidence we can use to get them to pay attention. And because we are lawyers, lenders that don't want to be sued frequently change their attitudes about negotiating a loan workout once we are on the job.

If you're trying to negotiate a loan workout with your lender and you've run out of options or patience, Howard Law can help. To set up a free, confidential consultation on your case, please contact us online today or call us toll-free at 1-800-872-5925.