HUD counseling completed...

[Judes]

Hi to all,

Our HAMP loan modification counseling is complete. We qualify for modification. Our lender does not participate in the government program. Still, according to HUD, we have options. The HUD counselor spoke on a three-way to the lender and they pushed to have the modification paperwork expedited to us. (the first set lender claims they mailed never appeared).

 

During this process, the lender sent their own appraiser out and the appraisal came back $90,000.00 less than what we paid for the home less than a year ago!

 

My questions is, we hear the lender may want to modify our loan using the original purchase price and a slight reduction in interest rate (which won't help much at all).

 

Why would the lender want to sell the home to somebody else at the $90,000.00 price reduction, or foreclose on it...... when they could modify the existing loan we have to the NEW appraised value and work out the modification from that point, therefore keeping the owners in their home? Isn't that the point of all of this?

 

Our lender seems to going along full steam ahead with foreclosing even though we are desperately trying to work things out.

 

Also, if anyone out there knows of a "reputable" forensic auditor or attorney, we would appreciate the input.

 

Thanks to all who give of their time and expertise on this board... much appreciated

[Gryffindor]

The problem doesn't lie with your lender so much as your servicer.

 

In a foreclosure the lender will lose money but the servicer will actually make money due to all of the fees they will tack on.

 

There's a couple of good articles on the web that describe why it's more beneficial to your servicer to foreclose than mod.

[Judes]

Hi,

Thanks for the info. Has anyone heard of Cenlar? We were told that they might have something to do with our loan servicing... we have no paperwork indicating this company, however we are discovering changes have been made in the last few months with our lender so this could get interesting.

 

Again, if anyone knows of a "reputable" forensic loan auditor.....just let us know.

 

Thanks again

[Gryffindor]

Your servicer is who you send your monthly mortgage payment to. Your lender is the entity that holds your note.

 

Usually, they are two separate companies. In my case BofA is my servicer while Fannie Mae is my lender.