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Television Station Pledges to Help Utah Family Stave off Foreclosure on Adjustable-Rate Mortgage

June 15, 2009

Salt Lake City's ABC affiliate is ready to help a family of six fight for a mortgage loan modification, the station, the station, KTVX, reported June 8. ABC 4 News has made the Weldons of Park City, Utah the focus of an ongoing series called "Family on the Brink." They started following Clay Weldon and his wife, Julie Weldon, as they dealt with the effects of Clay Weldon's layoff and the ballooning interest rate on their adjustable-rate mortgage. Thanks in part to the station's efforts, Clay Weldon has landed another job -- but now, the family faces the difficult task of negotiating a loan workout with their bank.

According to the report, the Weldons bought their home at the height of the subprime lending bubble and have an adjustable-rate mortgage. That would be a problem even if Clay Weldon had never lost his job, because the interest rate on the mortgage has risen sharply, to 10.5% -- giving them a monthly mortgage payment of nearly $5,000. They used their savings to continue to pay on time, but called their mortgage lender, Wells Fargo, to discuss a loan modification. Like thousands of other responsible borrowers, they were told that the bank wouldn't even consider a loan modification until they were in default. The station reported that they've spent hours on the phone, mostly on hold, trying to speak to someone about applying for the bank's version of the federal Making Home Affordable plan, whose criteria they know they meet.

As Puente Hills mortgage loan modification lawyers, we happen to know that adjustable-rate mortgages are some of the riskiest loans out there, since they allow borrowers to take out loans that they may not be able to repay later. This opens the door to predatory lending by loan officers and others willing to mislead consumers without a lot of experience with mortgage lending. In fact, adjustable-rate loans are blamed in part for the real estate crisis. On paper, the Weldons look like a pretty good candidate for a loan modification -- but apparently, neither a steady income nor the publicity surrounding the ABC 4 News reports is enough to even get their lender's attention, never mind seal the deal on a loan workout.

Howard Law LLP represents people who are just like the Weldons, except without a TV news station to help. Our Rancho Cucamonga loan modification lawyers negotiate with mortgage lenders on behalf of clients who believe they can avoid foreclosure or bankruptcy and stay in their homes if they make some changes to their loans. In many cases -- particularly those involving adjustable-rate loans -- we can use evidence of predatory lending to make sure we have the bank's full attention. Our Santa Ana mortgage loan modification attorneys have successfully gotten lenders to lower monthly mortgage payments by changing the structures of exotic and subprime loans; lowering interest rates; and changing repayment periods.

If your family is struggling to make mortgage payments, or you know you will soon, and you need help taking the next steps, you should call Howard Law for a free, confidential consultation. To set one up, you can call us toll-free at 1-800-872-5925 or contact us via email.