Today, I received mail from one of the many mortgage companies I deal with. It was a request for permission to contact a client of mine directly regarding a loan modification. This is a pretty standard form, so I signed it and prepared to send it back.
That’s when things got a little suspicious. The form instructed me to send it back in the self-addressed, postage-paid envelope accompanying the letter. But the envelope I received had exactly one sheet of paper in it: the form itself.
Well, I thought, human error and oversights can happen. I’ll just mail it myself. I looked the form letter over. And then studied it closely. I couldn’t believe what I was seeing.
Though it’s pretty standard stationery, there is no address to be found anywhere on this letter. No address, no fax number, and no contact number for the person who sent the letter.
I had so much trouble believing this that, even as I’m writing this entry, I paused to study that letter one last time. No contact information whatsoever appears on this letter. I can’t help but assume that this is intentional: a false attempt to appear cooperative while actually stonewalling the borrower.
I wish I could say that such incidences are isolated. But my experience over the years is that mortgage companies are seldom cooperative in the loan modification process.
Whenever a client of mine has prepared a loan modification packet, I instruct them to send it by certified mail, so that someone has to sign for it, and to keep a copy of everything they’ve sent. Because mortgage companies are notorious for misplacing loan modification packets or claiming they never arrived.
In the worst incident, the borrowers had sent in 8 separate copies of the loan modification packet. Every time they finally got acknowledgment of receipt of the packet and began working with a mortgage company representative, that representative would get transferred, someone else would be in charge of their mortgage, and that person would not have a copy of the packet anymore.
By the time they came to me, they were fighting tears of frustration. A short-term layoff had gotten them behind on their mortgage, but because the mortgage company would not accept their payments they were now months behind, in danger of foreclosure, and the interest and penalties were piling up.
Unfortunately, there is very little regulation that forces mortgage companies to act in good faith. There have been some class action lawsuits leading to multi-million dollar settlements, and some borrowers are benefiting from those funds. But as far as actually changing the behavior of these companies on a day-to-day basis, the lawsuits have accomplished very little.
It’s pretty appalling that we as a nation loaned money to these companies, sent none of the CEOs to jail, let them all pay themselves giant bonuses, and are still getting screwed over by them. But hey, corporations own the government now…