Consumer Law

Homeowners Not Getting Loan Modifications

By M. Stan Herring

Our friend Denise Richardson of Givemebackmycredit.com has posted an article that discusses why most homeowners aren't taking advantage of the massive government spending that is supposed to stall foreclosing and make homes more affordable.

Homeowners seeking a loan modification are often met with difficulties from the government programs supposed to help. They get responses like "we lost your paperwork" and "you're not qualified" and "we're understaffed." But the simple truth is that there is more money to be gained in foreclosures and short sales than in loan modification and the government programs make modifications such a hassle for homeowners that many see it as not worth it. Richardson also references a video.

Earlier investigative reports clearly show there is little to no incentive for mortgage servicing companies to work with homeowners. As mortgage fraud continues to be exposed and lenders continue to cut off home equity lines and block consumers from access to credit, we can only ask - who's looking out for us? What government agency can the consumer or small business owner turn to for protection?

If you would like more information on foreclosure, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Full post as published by Alabama Consumer Blog on February 13, 2010 (boomark / email).