Mortgage Violations in St Louis Mo
June 24, 2016 Real Estate No Comments

Mortgage servicers handle loan modification applications from homeowners. Unfortunately, mortgage servicers often make serious errors when processing loan modification requests including:

  • Failing to Process the Application in Timely 

Many homeowners have experienced lengthy delays when waiting for the servicer to make a decision on whether or not to grant a loan modification.

Federal mortgage servicing rules[1] that became effective January 10, 2014, aim to reduce these delays.

  • Homeowner Default 

Sometimes mortgage services tell homeowners that their monthly payments have to be late to qualify for a modification.  This information is not accurate in all cases such as a Home Affordable Modification Program[2] (HAMP) where the homeowner can be in danger of falling behind.

  • Down Payment

In most cases the homeowner should not have to pay a down payment to obtain a loan modification such as with a HAMP modification.

  • Failing to Convert a Trial Modification into a Permanent One

Many loan modifications start with a three-month trial period.  If the homeowner makes the payments on time, the modification is supposed to become permanent if the owner meets the eligibility criteria.

Harm to St. Charles Homeowners 

Mortgage servicers that commit violations cause Missouri home owners to:

  • Incur increased fees and costs in order to avoid foreclosure
  • Spend money in an attempt to get a loan modification that did not come to fruition
  • Miss out on the opportunity to pursue other alternatives to foreclose such as a short sale or a deed in lieu of foreclosure.

If your mortgage servicer committed a violation mentioned or is otherwise improperly handling your loan modification, it is important to speak to an experienced St. Louis loan modification attorney who can advise you what to do in your particular situation. 

Contact an Experienced St. Louis Loan Modification Attorney 

A family that needs a loan modification needs to speak to an experienced Missouri loan modification attorney who can discuss not only loan modification terms but other options that may be available such as a short sale or deed in lieu of foreclosure. Call Kenneth P. Carp today at (636) 947-3600 to schedule a free consultation to discuss your case.

References

[1] http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/2013-real-estate-settlement-procedures-act-regulation-x-and-truth-lending-act-regulation-z-mortgage-servicing-final-rules/
[2] https://www.makinghomeaffordable.gov/steps/pages/step-2-program-hamp.aspx

Written by kennethpcarplaw@gmail.com