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Los Angeles Loan Modifications Require Experienced Attorney

May 25, 2012

Los Angeles Loan Modification Attorney Vincent Howard knows that many underwater homeowners are hoping for a loan modification in the coming months, per a $25 billion settlement among five major banks and 49 state attorneys general. 1098686_unique_4.jpg

However, a recent story chronicling the journey of a customer who has been given the runaround on her loan modification by Bank of America for the last two years illustrates why it's so critical to have a skilled foreclosure defense attorney on your side.

Despite the agreement that these banks shook hands on - the agreement that stemmed from widespread mortgage fraud and various other financial abuses - some financial institutions appear to be dragging their feet when it comes to making it right. That means struggling homeowners are left in the lurch.

The Los Angeles Times followed the case of a 40-year-old homeowner who purchased a two-bedroom house near the University of Southern California. Every month, the homeowner, a housekeeper by trade, was shelling out an estimated $2,300 for her mortgage. She and her husband, a truck driver, were barely keeping their heads above water.

Still, they made it a point to never miss their payment.

Then back in 2009, one of the homeowner's clients told her about the Making Home Affordable program, a federal initiative that aimed to lower mortgage payments for those who were upside down on their homes. In other words, the banks would agree to lower the mortgage payments for people who owed more on their homes than the homes were worth - particularly those who had gotten into that situation as a result of predatory mortgage schemes.

The homeowner in this case gathered all the important paperwork and filled out the appropriate applications. But as she explains it, she was "put through the ringer."

Documents kept coming up missing. She was required to submit the same paperwork over and over again. For months.

Finally, she was granted a trial loan modification for $1,500. That was later upped to $2,000. Again, her payments were never late.

But then, Bank of America tried to insist that she was four weeks late on one of her payments. Records prove that she was not, but the bank essentially couldn't keep its story straight. In some correspondences, they said everything was fine - it was their mistake. Other times, they blamed the situation on the homeowner, and insisted she was still behind on her payments. In other correspondences, they blamed it on the federal government.

The homeowner and her employer, a television producer who had been helping her, were given a complete run-around. Eventually, they contacted a columnist with the Times. That finally grabbed the attention of bank administrators, who eventually apologized and agreed to straighten out the mess - which by the end of it, had put a serious dent in the homeowner's credit score.

Of course, note every Los Angeles loan modification problem can be taken up by a reporter. That's why you need an experienced foreclosure defense attorney like Vincent Howard, who can make sure you are negotiating from a position of strength.

If you'd like to talk to an experienced attorney about Los Angeles loan modification, call Vincent Howard and the team at Howard Law, P.C. For a consultation, you can reach us through our website or call 1-800-872-5925.

Additional Resources:
BofA provides example of mortgage-modification foot-dragging, David Lazarus, L.A. Times

More Blog Entries:
Wyoming Supreme Court Rules Borrowers Must Continue Paying Loan After Collateral Sold - Wallace v. Pinnacle Bank, May 17, 2012, Los Angeles Bankruptcy Attorney Blog