It wasn’t long after we got our home loan that we were informed by friends that is was “one of the worst loans” they had ever seen. Gotta love comments like that – especially when they’re attached to personal investments.
Anyway, a couple years and two homes-that-are-worth-half-what-they-were later, we are in the middle of a loan modification. A friend hooked us up and it’s going well. We got a letter the other day from our lender asking us to sign an agreement to cease paying our mortgage for a determined period of time until our terms are resolved. My husband also received a phone call in which a rep. from our lender tried to harrass him into signing it.
Called our lawyers handling the case and they informed us that the lender wants to get homeowners to sign it, roping them in unassumingly by not having to make their payment when in actuality, once the paper is signed all modifications freeze for one year and the homeowner is left with the same horrible loan conditions once the attractive offer of 3 free months has passed. So wrong. So wrong.
If a loan is illegal, as our was deemed to be, mortgage companies and banks ought to cut their loses and modify the loan – homeowner keeps their home and is actually able to make their payment and the bank gets their money. Otherwise everyone loses. Beware, mortage companies are not your friend.