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Why Won’t My Lender I Modify My Loan?

n 2007, the nation began the devastating downward

loan modification and told to stop paying their mortgage.

spiral into what is now considered one of the

With promises that they were “qualified” or “pre-

worst mortgage crises in recent history. Before the

approved,” the banks mislead homeowners into believing

mortgage crisis hit, people were optimistic that owning a

the ease with which they could obtain a loan modification.

home would be a good investment. Banks were offering

Instead, these same banks essentially engineered the

easy access to financing with low teaser interest rates and

foreclosure. Homeowners were given the run around until

the availability of financing caused home appraisals to

their payments were so far behind that it was impossible

skyrocket. Most buyers were not prepared for what was to

to cure.

come when the bottom fell out – home prices plummeted, the banks were bailed out, and the homeowner was left holding the bag.

tactic.” Borrowers were quoted fixed rate loans at low

“The banking institutions sold thousands of loans that they knew could never be paid back,”

by SukHI k. brar

Another common situation among those facing foreclosure is what White called a “bait and switch teaser percentage rates but were not shown the required documents prior to closing. Then, on the spot, borrowers

said Jamil White, principal attorney

were forced to make a decision to accept loans they did

at Louis White Attorneys at Law. “It’s

not bargain for such as adjustable rate mortgages that had

a racket. They sold loans to people

no beneficial features. If borrowers expressed concern over

and took out insurance on those loans,

the types of loans offered, the brokers or lenders stated

so when the day came that

they would simply refinance them out of the loan in the

people could no longer afford

future. In reality, that refinance would never come.

their mortgages, the banks

Again, such practices were and are illegal.

made off like bandits. Today, it is more profitable to a bank to foreclose on a homeowner than it is to keep them in their house, otherwise we wouldn’t be seeing this widespread foreclosure crisis.” Some people have tried to get loan modifications on their own but are continuously given the run around. White said, “There are certain ‘thresholds’ that need to be met in order to be eligible for loan modifications and many people don’t understand how to position themselves in those thresholds. In most circumstances an experienced

For the vast majority of homeowners out there, they just want a mortgage payment that is fair, something that can help them stay in their home and build equity.

attorney can achieve the best results.” Louis White Attorneys at Law has sued many banks for improper conduct and has leveraged those lawsuits into hundreds of thousands of dollars in principal reductions. In one recent case, White negotiated an agreement with Bank of America that resulted in a $200,000 principal reduction in a client’s loan amount and a 2 percent interest rate. For the vast majority of homeowners out there, they just want a mortgage payment that is fair, something that can help them stay in their home and build equity. However, many of these people don’t know how to attack the banks to get what they want. There are certain circumstances where banks act wrongfully. For instance after 2009, many homeowners contacted their banks for a refinance when they were current on their loan but were instead steered into a

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Underwater Mortgage Help | March 8, 2012 | A paid publication for Louis White, Attorney-at-Law | www.LouisWhiteLaw.com

There are so many legal remedies homeowners can use to place themselves in better financial position. Homeowners who have a combination of high debt, a home that is worth less than what they owe and a second mortgage can be given the opportunity to have the second mortgage completely eliminated, the credit card debt discharged, and a loan modification granted on their primary loan. Louis White Attorneys at Law have helped with the short sale process and emergency cases involving fast approaching trustee sales as well. “If you give us 7 days before a trustee sale, in all likelihood, we can stop it,” White said. “However, if you wait that long, other potential solutions will expire.”

Underwater Mortgage Help  

An alternative news source and guide to Sacramento. Read local stories, search our calendar, find music, film and dining guides to the city,...

Underwater Mortgage Help  

An alternative news source and guide to Sacramento. Read local stories, search our calendar, find music, film and dining guides to the city,...