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Loan Modifications-- What you might not know (Betty Sexton)

One of the best parts of Call for Action's Ask an Expert Week is that I learn a lot, too! Thought I would pass on just a few things I picked up. This information from the Pikes Peak Foreclsosure Prevention Partnership.

 

Counselors with the Pikes Peak Foreclosure Prevention Partnership were a wealth of information!

 

They told me a number of people who were having problems making their mortgage payments called their lenders and were immediately given a temporary loan modification.

 

They assumed everything was okay while making their new "loan mod payments," but eventually they received a notice that they were in foreclosure. They were shocked and upset.

(We've had quite a few of these kind of calls to our Call for Action hotline, too.)

 

Counselors with Pikes Peak Foreclosure Prevention Partnership say that's because the person they talked to from the mortgage company was just a salesperson... who gets paid to keep a customer... a paying customer. I'm told their job is simply to move a borrower into another product... whether this is a good move for the customer or not.

 

The borrower never got paperwork or documents outlining what this "loan mod" means, nor the ramifications of switching.

 

What counselors told me... you should always call and ask for a lending supervisor. They say talking to the first line of calltakers means you're simply talking to salespeople.

 

Remember this, with a loan modification you are on the hook for the entire amount of your original loan no matter what. Nothing will change that. You are just temporarily paying less and agreeing to new terms of a contract you know nothing about... because you don't have a copy of the contract and haven't read it.

 

Bottom line if you're in trouble, call the Pikes Peak Foreclosure Prevention Partnership Hotline at (719) 444-8833.

You may have to leave a message, but a trained and knowledgeable counselor will get back to you. These volunteers are real estate attorneys, brokers, and realtors. They can steer you in the right direction with no ulterior motive than just wanting to help you.

 

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