You may be asking, why shouldn't I just work with my bank to modify my loan? If you have been through the loan modification process or are in the Loan Modification process, you have probably experienced an uphill battle. Every situation is different so we must look at your current situation to determine the best route for you, but if you have been through the Loan Modification process and had no results or just no answers at all then litigation might be the solution for you.
Let look at some facts that clearly show why litigation, instead of a modification might be a better solution in today's housing market.
Banks Want To Foreclose
Banks do not have a financial incentive to modify mortgages any longer. Banks would much rather foreclose on the property today and get to liquidate it at today’s market value. Their alternative is to foreclose on the property a year from now at a substantially reduced market value (it is projected that property values will decrease an additional 20% in 2011).
94% Denial Rate
Banks are denying 94% of all loan modification requests. If the bank does give the homeowner a modification, it will most likely save them only a couple of dollars a month and will not reduce the principal balance.
Misappropriation of TARP Funds
Banks misappropriated billions of dollars they took in the government bailout program. All they are doing now is playing a game with homeowners and going through the semantics of the loan modification process with no real intent of modifying.
Endless Paperwork
Every bank wants updated documents (bank statements, pay check stubs, 4506ts and so on). They will even lose your paperwork and set impossible deadlines to get them a new package. This is another tactic they use to discourage homeowners and make them go away.
If you feel you do qualify for a Loan Modification but simply have not been able to get the process started or need help with the Loan Modification paperwork, we can help you there as well.