Settlements, Modifications, Short Sales



A list of telephone hotlines and Web sites that offer resources for those at risk of foreclosure or looking to modify their existing mortgages. (See “Mortgage-Programs to Help Borrowers”.)

State Web Site/Phone Number
Alaska Consumer Credit Counseling Service of Alaska
Arizona Arizona Foreclosure Prevention Task Force
California Consumer Home Mortgage Information: Help With Your Mortgage; California Housing Finance Agency: Foreclosure Avoidance Information
Colorado Colorado Foreclosure Hotline
Connecticut Connecticut Families Program; Mortgage foreclosure Assistance Hotline: 1-877-472-8313
Delaware Delaware Foreclosure Information; People can also contact Gerry Kelly, the Deputy Bank Commissioner for Consumer Affairs (; 302-577-5092 ) or Albert Shields, a policy advisor for the State of Delaware (; 302-577-8787
Florida Tips for Avoiding Foreclosures, Delinquencies and “Foreclosure Rescue” Scams
Georgia Georgia Dream Homeownership Program
Idaho Foreclosure Prevention Resources
Illinois Homeowners Referral Helpline: 1-866-544-7151
Indiana The Indiana Foreclosure Prevention Network
Iowa Iowa Mortgage Help
Kentucky Kentucky Homeownership Protection Center
Louisiana Louisiana Housing Finance Agency
Maine Maine State housing Authority: Preventing Foreclosure
Maryland Maryland HOPE
Massachusetts Home Saver Foreclosure Prevention Program
Michigan Save the Dream
Minnesota Minnesota Home Ownership Center: Foreclosure Prevention
Mississippi Mississippi Home Corporation
Missouri Missouri Housing Development Commission: Foreclosure Resources
Montana Montana Department of Commerce: Foreclosure Prevention
Nebraska State of Nebraska Department of Banking and Finance: Help for Avoiding Foreclosure
Nevada Nevada Foreclosure Help
New Jersey NJ HOPE
New Mexico New Mexico Mortgage Finance Authority: Foreclosure Prevention Information
New York Subprime Foreclosure Prevention Services Program
North Carolina NC Foreclosure Help
Ohio Save the Dream
Oklahoma Neighborhood Housing Services of Oklahoma City, Inc.
Oregon Oregon Housing and Community Services: Foreclosure Provisions
Pennsylvania Alternatives to Avoid Foreclosure
Rhode Island Rhode Island Housing : Tips for Avoiding Foreclosure
South Carolina Just the Facts on… Mortgage Foreclosure; Credit Counseling in 2008
South Dakota Mortgage Crisis Hotline
Tennessee Tennessee Housing Development Agency: Foreclosure Counselors
Vermont Mortgage Assistance Program; Mortgage Assistance Helpline: 1-888-568-4547
Virginia Virginia Foreclosure Prevention Task Force
Washington Washington Homeownership Information
Washington, D.C. Foreclosure Mitigation Kit
Wisconsin Wisconsin Foreclosure Resource

27 Responses

  1. It looks like the government the system have hand in the problems otherwise that deceiving foreclosure transfer to to different services wouldn’t continue

  2. We have been in our home for 10 years now.
    My husband and I loss our job in 2010 and have tried to save our home thru loan mod and filed bankruptcy to stopped the FC sale, we have hired several lawyers in the past, and one was a fraud there name was Home Alliance, pls beware of this, they will email you a letter and make it sound so good. Well, finally we were approved for a loan mod last year, but we were not able to pay the agreement because I was diagnosed with a metastatic breast cancer stage IV, I pleaded with the mortgage company to give me more time to get well and gain a full time employment. I have been under surmountable of stress with our home and my illness. We wrote them a letter asking to postponed the loan mod till I’m finished with my chemotherapy. They responded with repayment schedule and added $2,000.00 more to the original amount. They are now demanding me to make a decision for repayment, short sale, deed lieu or the possibility of fc sale. Both my husband and I are under social security disability, can you please give us an advise for people who have disabilities, and what is our right as a home owner to stay in our home while undergoing cancer treatment. Thank you for all the help and resources you can give us.

  3. I am looking for a new attorney to take over a wrongful foreclosure lawsuit against Bank of America. My case is currently in Federal court in Houston, Texas and I have had to fire my current attorney because she failed to file documents twice – simply negligent on her part. Bank of America has approached my attorney 3 times with offers and she ignored them. I also have a written letter OF ADMITTED WRONGFUL FORECLOSURE from the President’s office of Bank of America. In that letter he also confirms that they rescinded the foreclosure when in fact they did not. So, I have a pretty solid case. However, I need an attorney who is will to finish our case on contingency or a small retainer.

    Any help or suggestions would be greatly appreciated!

  4. It’s a last chance to reject the debt collector under a heighten effort pushing for consumers rights. Pursuant to the FDCPA . . . . Send a denial at once –

    Do see an attorney

    Always consult an attorney to determine your rights as a fee simple title holder

  5. Now RCS’s attorney says that a loan mod does not require disclosures as a refinance does. However Citibank sold us out to RCS and we have a new loan with them and they never mailed us any disclosures. They gave us 24 hours to accept the deal. We did then rescinded it. It goes from a three day to three year rescission.





  6. I have an indymac with a mers… what does this all mean..





  7. I have been fighting foreclosure since 2009. We are still litigating. Residential Credit Solutions, Inc is a mortgage collection agency. They were never on the deed and recently through our litigation they put themselves on our deed. Now RCS’s attorney says that a loan mod does not require disclosures as a refinance does. However Citibank sold us out to RCS and we have a new loan with them and they never mailed us any disclosures. They gave us 24 hours to accept the deal. We did then rescinded it. It goes from a three day to three year rescission. RCS is disputing the rescission and says they do not have to give us 72 hours to shop and we do not need disclosures. Please help me. I need knowledge and case law that supports a loan mod requires disclosures under TILA. And that a 3 day notice is automatically a 3 year rescission if the original lending bank is still under 3 years. Also when we mailed out our letters of rescission to all banks and it was ignored
    because they said we were past the statute of time.
    Please Help Me.

  8. I have an indymac with a mers… what does this all mean.. I live in florida..any help would be appreciated. I am not behind on my mortgage but it is tough to pay each month. Was i Wrongfully done as a homeowner. Please do get in touch with me through email. I would love to hear what is taking place. I read livinglies and try to keep myself knowlegable about what is going on, but many homeowners are going through hell. The judges are turning their heads, the banks are walking away with their homes and no one wants to hear anything about what has taken place that i see when a homeowner does try and fight the system. Florida has turned the ears to all homeowners.. the court system is the worst. Any help to make me aware of signs of something not done right would be helpful. One day real soon i may be in the same boat as the many homeowners who already are. Thanks

  9. MAKE IT ALL GO AWAY…..How would you like to stay in your home..? get it for market ….?and make foreclosure go away??? forget mods >>>they don’t work. litigation>>>to much money.. ha..if you had 30k you would not be in this mess ….the problem is market value, and a balloon filled with laughing gas.
    (get to the point!) solution.. 1pay your H.O.A
    4 VACATION !!!! the banks do it every day …its just not in the daily sound bite>>>(say the code word, investor) and watch the BANKS serve you tea, instead of U.D.!!!!!!!!!!!!!!!!!!!!!!!!!!!
    Derrick (619)772-5530


  11. Watch Out for Deficiency Judgment collection
    Firms profit off Florida homeowner defaults
    Palm Beach Post
    Joshua Rand is the muscle. Not in a busting-skulls, Tony Soprano kind of way.

    But he does seek to collect, and sometimes even buys, the debt left by delinquent homeowners who walk away from their mortgages — the same borrowers who often assume that a foreclosure or short sale wipes out their loan balance, ending their liability.

    A principal in the New York-based Deficiency Judgment Recovery Network, Rand said he has “hundreds, maybe thousands” of home loans gone sour in Florida that his company, formed in late 2009, is working to collect balances from.

    Rand either is hired by lenders to collect the deficiencies for them or his company buys the debt in pools for pennies on the dollar, profiting on the back end by making a borrower pay up.

    “People are under the assumption that the banks are so busy modifying home loans that they don’t have the bandwidth or stomach to go after those who are walking away. That’s a bad assumption,” said Rand, whose company motto is “We turn shortfalls into windfalls.”

    A deficiency judgment, or claim, is basically the remainder owed on a home loan when a borrower goes into foreclosure or completes a short sale.

    Before the real estate crash, there were relatively few foreclosures and even fewer short sales, so deficiencies were rare.

    Now, tens of thousands of defaulted home loans are on bank records. But mired in busted properties, banks still have been unlikely to pursue claims, attorneys say.

    That’s where the Deficiency Judgment Recovery Network comes in.

    In fact, some predict a cottage industry of entrepreneurs will start buying up the delinquencies to pursue the balances on their own.

    “These lawyer firms are salivating. They can’t wait because they see huge opportunities to collect money,” said Mark Greene, owner and president of Short Sale Operations in North Palm Beach.

    “It’s going to be a blood bath.”

    The idea is similar to companies that buy credit card debt and attempt to collect, except homeowners are more attractive targets than credit card holders, said Orlando attorney Jonathan Alper, who specializes in foreclosure and bankruptcy law.

    “At some point, the homeowner probably had money, whereas with a credit card claim, they may never have had money,” Alper said.

    In 2009, Florida courts handled 398,825 foreclosures. An unknown number of short sales has upped the ante for banks even more.

    By the end of this year, the Irvine, Calif.-based company Realty Trac predicts 3.5 million more foreclosures nationwide.

    “I’m not surprised someone figured out how to make money off it,” said Chris McCarty, director of survey research at the University of Florida’s Bureau of Economic and Business Research. “There had to be some kind of push back.”

    States differ on how long lenders have to pursue a deficiency, ranging from a few months to several years.

    In Florida, a claim must be filed within five years, but the lender has up to 20 years to collect.

    So even if a borrower has no money today, he or she may rebound within the collection time frame.

    “People are broke right now, but they won’t be broke forever,” Greene said.

    Rand said his company isn’t going after people who lost their homes because of unemployment, illness or other hardships.

    Loans receive careful review. Only people who can afford to pay but have decided to stop are pursued, Rand said.

    Walkaways, also called strategic defaults, are believed to be on the rise as property values remain low and borrowers continue to owe more on the loan than the home is worth.

    “The fact of the matter is we have to find some way out of this and those who need help should get it, but there are those who are gaming the system,” Rand said. “There has to be some level of accountability. It just can’t be a free-for-all.”

  12. Bob want to know about his modification


    You asked the question “why has the bank yet to what? Offer a modification?

    What Bank?

    Bob, the lender is an originator and a seller of your loan. They hold a security interest in performance of the investment which includes the loan you received. That’s stock, shares, certificates…got it? They hold no loan of yours.

    Who is offering you a work or modification as you call it? A shareholder owning a 5% interest (that is really to cover their haircut in the deal) cannot do a modification. Or is the trust offering you a workout. The Master servicer and trustee do not even know who you are, get it?

    So again, your modification offer is by whom? A TRS who is bankrupt? A defunct FSB? The FDIC who is on the see no evil, hear no evil speak no evil program for the acceptance and recovery challenged agencies?

    Bob, modification program? Lender no can do Bob?
    Your not encouraging them is you?

  13. while we were modifying the loan, they are still going ahead with foreclosure proceedings and we have not even got approval or denial from the bank yet. The Bank’s attorney has filed a action to foreclose? P.A
    going nuts

  14. Friends;

    It is absurd to believe the lenders recourse is sufficient to honor each defaulted loan repurchase shortfall which is in fact a recourse provision necessary for a lender to perform a foreclosure, if even possible.

    Mortgage securitization is a chaotic financial process weighed down by underlying risk illustrated best in a world economic collapse.

    The misnomer is for a collateralized investment offering security whereby the assets are derivatives traded multiples of the collateral.


  15. Quote :

    As I recall, New Mexico is a judicial foreclosure state. In order to foreclose in a judicial foreclosure state, the mortgage servicer usually engages a foreclosure contractor (often LPS), which engages a foreclosure mill law firm which files a complaint in state court. You should have been served with a copy of the complaint.

    After the filing and service of a complaint, in most states, state court rules provide for some specific amount of time during which the properly served complaint must be answered in writing by the named defendants. When the defendants fail to respond, the plaintiff can and usually does apply for and receive a default judgment and an order of sale.

    It is not at all unusual for servicers to continue to communicate with the unrepresented defendant and to encourage the defendant to make past due payments and to bring the balance current. The servicer will also very often present a so-called loan modification agreement to the borrower and encourage the borrower to sign.

    Leaving aside for a moment the federal HAMP program, servicers have for some time used the loan modification process to immunize themselves and to obtain additional evidence to use against you in the foreclosure. The modification process is not usually viewed as a means to avoid foreclosure, but rather as a means to better assure foreclosure on terms favorable to the servicer!

    The loan modification agreement typically contains much oppressive language and is presented on a take it or leave it basis. A typical modification agreement very often seeks (a) your confession as to the validity of the original promissory note and mortgage, deed of trust or other mortgage security instrument, (b) your waiver of any possible defenses as to RESPA or TIL violations or any defenses relating to fraud in the origination of the loan, (c) your confession and admission of the validity of the asserted amounts owed, (d) your agreement to pay additional late charges, legal fees and other charges, often including broker price opinions (BPOs) and force placed insurance, (e) your waiver of any defenses relating to fraud in the servicing of the loan, (f) your agreement to make timely payments for some period of time, during which the servicer agrees to forebearance as to repayment of the other past due amounts. When that period expires or when you fail to make timely payments, the modification agreement will be used against you if you contest the foreclosure.

    You will be encouraged to sign and return the loan modification agreement (making the agreement contractually binding on you), but the servicer will never actually sign and return an executed copy to you (depriving you of any actual benefit to the bargain, which they can always later repudiate).

    During such a modification process, the servicer will tell you that the foreclosure will be suspended or withdrawn, but when you fail to obtain legal representation and file an answer, very often the servicer will have the law firm proceed against you and obtain an actual default judgment. They will assure you orally that you can disregard the foreclosure happening in court and will tell you that this is all a mistake, which will be corrected later. But, in fact, they are simply trying to take your very last nickel before selling the property at auction and obtaining an ejectment order!

    In most states, making oral representations which are designed to keep you from the courthouse is a species of extrinsic fraud, which can be a very strong basis for overturning the default judgment. But you will have a proof problem. And the period of time during which you are entitled to appeal or to have such a judgment set aside is usually limited.

    You will tell the court what was orally related to you by telephone by the mortgage servicer and the servicer’s foreclosure mill attorney will tell the judge that you are a deadbeat and cannot be trusted. You will be asked to present some evidence of these oral representations by the servicer and you will find that you are unable to actually prove the deceit involved in this situation.

    If you are able to afford an attorney, you need to try to obtain representation right away. If you are not able to afford an attorney, see whether there is a local legal aid society which assists indigent persons.

    It is very tough to win a foreclosure case on a pro se basis, but there are many experienced pro se litigants at this forum who may be of some help to you.

    I would encourage you to check your state’s laws relating to recording telephone conversations. In some places, it is permissible to record a converstion without the consent of the other person. In other places this is a crime. BE CAREFUL ABOUT THIS!

    The law may be different as to undisclosed persons also listening in on the conversation. You might want to consider finding several of the most reliable, persuasive and trustworthy people you know and asking them to listen in while you call the servicer (if this is lawful). For example, you could have others listening on extensions or put the servicer on a speaker phone and have the others remain silent.

    Try to get the servicer to state orally that the foreclosure was an accident or a mistake or let the servicer otherwise discourage you from obtaining an attorney or responding to the default judgment. If the servicer personnel are smart, they will refrain from discouraging you from seeking relief or from mischaracterizing the situation. At this juncture, they have relatively little to gain by misleading you. They already have a default judgment against you! By contrast, if they actually seek to keep you from the courthouse by continued deceit, this may prove to be evidence that could be helpful in getting the judgment set aside.

    There is much peril in your continued conversations with the servicer. They probably are recording the conversation (and will tell you so) and/or they are making computerized notes of what is said which will be used as evidence against you. These notes may not actually reflect the disposition of the conversation. That is, these notes will be self-serving. You need to avoid making any admissions that can be used against you. You need to get the servicer’s employees to talk without giving up much more information.

    The servicer employees do this for a living and are going to be wiley and deceitful. They will orally encourage you to make new payments. They will try to finesse the issue of the court case without actually telling you not to obtain a lawyer or without telling you to ignore the judgment. They will try to hold out hope in another way, encouraging you to make another payment or two and assuring you that the modification is soon likely to go through.

    The fact of the matter is that the servicer could agree to a modification, could agree to a forbearance and/or could direct their attorneys to vacate the judgment and dismiss the case. But they are unlikely to actually do so.

    Instead, they will string you along until the appeals period runs and you are no longer eligible to appeal the default judgment. Then you are completely over a barrel. You have already lost without ever having your day in court.


    In closing, you should carefully consider the value of your property versus the outstanding balance of the mortgage, your other resources and alternatives, the extent to which it is in your economic interest to continue paying the mortgage or to default and walk away. You also need to bear in mind that even after obtaining an order of sale that the sale is not instantaneous and that the plaintiff might still need to obtain an ejectment (eviction) order to get you physically out of the property (processes to obtain possession vary from state to state and I am unsure about how this is handled in NM).

    Bankruptcy is an alternative. This can possibly delay the sale for a little while, but can have other undesirable consequences. And a bankruptcy can actually be counterproductive in getting the default judgment vacated. Bankruptcy typically results in an automatic stay of all other state court litigation and this would include your efforts to set aside the default judgment. BE CAREFUL AND GET GOOD COUNSEL BEFORE PROCEEDING WITH A BANKRUPTCY.

    The most important thing to bear in mind is that various oral conversations with the servicer and additional amounts you pay based upon such oral representations will not give you any assurance whatsoever that the court ordered sale of the property will not proceed. You may be throwing good money after bad.

    If what was proposed was a HAMP modification, this at least somewhat changes the equation, but only a bit at the margin. With HAMP modifications, there are federal rules to be followed. But these can be violated with impunity when you lack any actual evidence to show the mischief. With a HAMP modification, you also may want to consider contacting your Senator or Congressman and letting them know of the deceit. I wouldn’t do this instead of, but rather, in addition to other approaches.

    You might also consider going to a news reporter. But this is also fraught with peril as the servicer is going to find ways to demonize you. But if the servicer’s employees actually are telling you that you can ignore the court’s legal processes and the default judgment, there might be some value in having a reporter sit in on your conference call. There are some cases where media involvement will shame or at least discourage the servicer from agressively proceeding to avoid bad publicity.

    No doubt, others here will have some other good suggestions. But do not delay in ascertaining your rights and seekign to get the default set aside! TRY TO GET A LAWYER. You are already in trouble and really need some help!

  16. Trustee commits violations of Fair Debt Collections Practice Act!
    A good cause of action against Northwest Trustee Services Inc, Routh Crabtree Olsen PS is that I have found they sell your private information to the public. Go to and find your foreclosure….then buy for $39.00 a copy of the title report that is supposed to be private between the trustee and the beneficiary. Any public person can order your report online. This is mail and interstate violations. Make a complaint to the Bar association, and the FTC and your state Attorney General.
    Call the title company on the top of the form and ask them. Then perhaps you can file a suit against Routh Crabtree Olsen and Northwest Trustee Services Inc for violations of 15 USC 1692 Fair Debt Collection Practices Act violation. It’s triple damages. Most likely they will have sent you a letter from Routh Crabtree Olsen. One I got even quotes the 15 USC 1692. So obviously THEY know about it. The owner of Routh, Crabtree and Olsen is Stephen Routh and Lance Olsen. Routh has various companies in AK, MT, AZ, CA etc. Just look at the list on the various web sites. has the same address as Routh Crabtree Olsen and Northwest Trustee Services and as Routh in AK.
    Also, the process serving company that they use is owned by them.

  17. I have a issue with The bank while we were modifying the loan, they are still going ahead with foreclosure proceedings and we have not even got approval or denial from the bank yet. The Bank’s attorney has filed a action to foreclose? Florida? Any one have answers is this legal??? Almost Homeless

  18. I requested my mortgage company, Wells Fargo to please do a Mortage Modification for me because I am a single mom of 4 and lost all bonuses at my job. My credit was almost perfect, around 760 and under no cercumstances did I want to affect my credit by falling behind on my mortgage. Instead of a reduction, they put me on a contract paying 500 less a month unhtil Dec at wich point I would have a large balloon payment. I was desperate and signed the contract. I repeateadly told them I did not want to affect my credit and they told me as long as I payed on time it wouldn’t happen. It was all a lie, they reported me late every month I have been on the contract even though I have payed on time and now my credit is 560. They have reuined my credit and now have me hostage. I can;t refinance or try to find a cheaper home with that score. CAN ANYONE HELP ME??

  19. We actually had this happen. We did NOT accept the modification offer by Morequity (Who has NOT responded to our rescission that was filed). The modification offer came with a STEEP response time or it would be “revoked” (I had to have the notarized documents returned and in their hands by Tuesday. We received the “offer” Friday late afternoon!!) and it said that the “Note would be ammended and re-recorded”. I KNOW that they do not have possession of my note. I NEED A WASHINGTON STATE ATTORNEY and cannot find one who understands these cases enough to help me.

  20. read your post on MERS. Now my loan is with MERS and I AQURA loan service is servicing my mortgage. However, my loan has been transferred so many times with different entities. I have not made a payment since March. So my question who is going to start the foreclosure? MERS? In addition the originator of my loan was MLN who is now out of business. So what next?

  21. I read your post on MERS. Now my loan is with MERS and I AQURA loan service is servicing my mortgage. However, my loan has been transferred so many times with different entities. I have not made a payment since March. So my question who is going to start the foreclosure? MERS? In addition the originator of my loan was MLN who is now out of business. So what next?

  22. don’t modify, eliminate and quiet title

  23. Does a second lender {chase heloc) have to subordinate a modified loan. They won’t subordinate a refi, even with a 780 credit score and appraisal at 87% equity. Only 70% ltv for EVERYONE, no exceptions. Don’t waste money on “processing fees” that are nonrefundable unless you have at least that much equity left, which is basically no one!

  24. Melody,

    Do you have a recorded assignment of Trust Deed showing that your beneficiary is now Lehman Bros.?

    I have an assignment recorded in the midst of my foreclosure proceedings (11/19/08) removing MERS as beneficiary and naming Greenpoint Mortgage Funding as beneficiary of record. I originally signed a promissory note naming Greenpoint as my Lender and MERS as my beneficiary.

    The second (first NTS rec’d on 10/31/08) trustee sale notice I received on 2/14/09 makes absolutely no mention of Greenpoint Mortgage in any capacity. It names MERS as the beneficial interest.

    I submitted a QWR to Greenpoint Mortgage, MERS, Countrywide (who was assigned as my servicing company) and Old Republic Default Management back on Jan. 2, 2009 requesting various answers to outstanding questions I have such as WHO HOLDS MY NOTE and WHO IS AUTHORIZED TO INITIATE FORECLOSURE PROCEEDINGS.

    I received a letter from Greenpoint that states that my correspondence does not constitute a valid QRW under RESPA guidelines and therefore will not be answered. Greenpoint states that I am to refer all questions to CW as my loan was transferred to them.

    I received a FEDEX letter from CW stating that they are in receipt of my QWR and are required to respond to my requests within 60 days of receipt which they state as being January 6, 2009 excluding holidays and weekends. I do not have any response as of yet but have spoken to the person who issued the letter last week. She is aware of my request and is getting ready to work on it.

    In my case I would conclude that Greenpoint is my beneficiary based on the recorded assignment where MERS is canceled.


    Would that suggest that my recent NTS is invalid as it names MERS as the beneficiary when it is clearly not?

    The wheels on the bus go round and round, round and round………

    Diane Wheatley, SoCal

  25. I received the following in the mail today after three month’s of waiting on the final approval of my loan mod. My sale date has been postponed to April 27, 2009 from March 11, 2009 but why? This is really stupid like nonsense that makes no sense whatsoever.

    Read this quick one page letter I received and give me your viewpoint on the reasons for my denial. It’s as if someone is talking out both sides of their mouth at the same exact time. What the……????

    Diane, SoCal

  26. I have requested loan modification papers and a copy of my note from Aurora Loan Services. They sent the information today. It was a Lehman Brothers product. I don’t know if I should modify the loan with Aurora or take it up with the original lender which was Cal Bay. Or should I talk to an attorney?


  27. Problems with a Loan Modification:

    The borrowers will think they are modifying their current loan when in fact they are starting all over again.

    The Foreclosing entity which lacks standing to bring lawsuit, is not authorized to modify anything since they are not the owner of the loan in question.

    Since the real parties in interest are no where to be found, they are taking it upon themselves with the help of their lawyers to steal your property.

    The borrower is actually getting a new loan which may enjoin borrower from rescinding new transaction.

    The foreclosing entity is STILL not using their own funds to modify (new loan) loan. They are getting funds to lend borrowers through Federal bail outs, insurance proceeds and believe it or not Investors. [same process]

    Their lawyers are not acting in a lawyer’s capacity but as BROKERS; [middlemen] they are getting paid commission on every new loan they help brokered.

    What Does Loan Modification Mean?
    A modification to an existing loan made by a lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.

    Why would they need to re-qualify if they claim they would make the borrowers payments and rates to be less?

    The borrower took the loan out with lender “A” but an unknown lender “B” is trying to modify it.

    When the modification is said and done, the borrower will have lender “B” as the lender. What happened to lender “A”????

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