Anyone have any experience with obtaining a loan modification? What was the outcome? Did you use an attorney?

Asked by Andrew Schmitt, Riverview, FL Thu Jan 19, 2012

How much did the attorney cost? I just want to start a general discussion about the topic so save your sales pitches. Thanks for sharing!

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Annette Lawrence’s answer
Annette Law…, Agent, Palm Harbor, FL
Fri May 4, 2012
Unfortunately, the most beneficial outcome of the HARP plan is when your modification is declined and you have the documentation, this changes the homeowners obligation regarding the eventual 1099. Of course your financial adviser or accountant can shed more light and other options on this outcome.

Like Bill, initial direct attempt failed, $2500 to attorney, and identical results except my money went somewhere else...and home stating to submerge.

It's a truly ugly situation where too many profit centers benefit from NOT coming to the aid of the homeowner. The river of money associated with distressed properties boggles the mind. And much of it exchanges hands behind the curtains of bank/government association. BofA must be LOL!

Sales Pitch;
Opps, it's forbidden.
0 votes
Amelia, Home Owner, Maryland
Mon Jun 25, 2012
Does Bank of America really do modification or is this some kind of joke please help !!!
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Apr 22, 2012
Loan Modification
Here is some information that might start you on your way to understanding what’s going on with Refinancing, Loan Modifications and in particular, Obama’s H.A.R.P. Program:

One report I read, showed that during the initial HARP period, only about 10% of the goal was achieved for helping homeowners in distress. While 10% is a pitiful result, the scuttlebutt is that the actual number is considerably lower; possibly as low as 60,000 (3%)!

One explanation was that INTEREST RATES had fallen so low, during the life of the program, that the Banks were doing Loan Modifications on their own! (Unbelievable!)

I understand that the primary reason for the breakdown in communication, is a new-fangled problem called “OUTLYING”:
What this means, is that when a Lender declines a Refinance/Modification and they report the results to HUD, they do not have to give a detailed reason or explanation; they can merely say that the “APPLICANT WAS NOT QUALIFIED” or “THE REQUIREMENTS WERE NOT SATISFIED”. HUD has been blindly accepting these refusals as Gospel and has not looked into the details of what these phrases mean. The Bank does not have to justify anything, they do not have to explain themselves to anyone. When they decline an application; they do not have to give the Homeowner or the Government a reason.

In addition; the initial parameters for Fannie Mae were 80 to 105% of the Loan to Value ratio, which was ludicrous. With the recent extension, this figure has been increased to 125%, which means that if the property had DECREASED more than 25%, then the new loan will not cover it and therefore will not qualify. (Those of you who are Math Whizzes and Mortgage experts; please check me on this; it’s confusing).

There is absolutely no incentive for the Banks to give away anything; particularly PRINCIPAL!

There are two conclusions which can be drawn from this;
1.) Don’t expect to see a lot of Loan Modifications
2.) There should be a lot more investigation here.
0 votes
Billrobertson, Home Owner, California
Sun Apr 22, 2012
I have been trying for a modification loan for 16 months. I am way past frustrated. To answer your question, after being drug through the most inept process of trying to acquire a Making Homes Affordable Loan at 2% through Bank of America, I'm convinced that BOA is the most despicable business in America.

I finally succumbed to getting help through an Attorney's Office here in California. I linked up with this law group as result of talking with one agent who hates BOA as much as I do. He convinced me he could make this happen. There fee is $2,500 but is supposedly refundable if they are unsuccessful.

He was sure he could get results by December 2011, but here it is the end of April and no results. Plus the guy that talked me into this arrangement has taken a leave of absence and I am unable to contact anymore. I again feel so screwed it's unreal.

For literally 12 months now I have been trying to find out if it is mandatory for the banks who received the bail-out money to use the money to help homeowner's or was it up to the discretion of the bank. Because I am now convinced, that BOA has no intentions of giving anyone a low interest loan. They spend your time requesting the same documents over and over again, losing them at least twice transferring to different agents and so on. The final analysis is you are inevitably turned down.

What incentive does the bank have to give anyone a lower interest loan when they aren't missing payments and have already put over 350,000 of their own money in their home. They know they got them. Who will walk away? If the banks who received the bail-out aren't under a federal mandate to loan that bail-out money and it's up to the banks, we might as well forget it. If we are testing the greed of the Bank of America, the outcome of that test is indisputedly obvious.

The BOA simply looks for reasons to turn you down. Check this out for yourself. Out of the 8 plus billions given to BOA alone,they have only allocated 1.4% of the money. I'm not sure completely about this, but I heard that if the bank loses when you are forced to disclose, they get reimbursed 80% of their loss.

If we foreclose, we are going to lose 400,000 dollars with no way to make it up. Every seller is providing a steal of deal for someone. How could we let everyone benefit except the person who is providing the benefit, the seller? I've written everyone about this and have yet to receive a response from anyone.
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