Our weekly conference call with industry insiders has reported more of the same. Lenders still fighting modifications unless pressured by professionals to play ball.
We had two more clients that came to us last week (one with Wells Fargo, the other with Indy Mac) that tried to do a loan modification themselves. Wells Fargo threatened to start the foreclosure process on April 20 after repeated attempts by the homeowner to work out a loan modification on their own.
Indy Mac refused the other client’s hardship, they can’t refinance, and were forced to list the property for a short sale.
These are just two more examples of the real truth where the rubber meets the road with lenders. As more lenders are forced to deal with homeowners, the more their dirty tricks will be brought to the public light.
The latest trick is for many lenders to compare the original loan application to the current financial position of the homeowner and if they don’t match up, the lender is turning this information over the FBI in an effort to prosecute homeowners for bank fraud.
This should be interesting to watch as it unfolds. I have a friend that has a high level security clearance and worked w/ the FBI. I can’t go into what he worked on, but suffice it to say unless there is over $50,000 in damage to a consumer due to identity theft, the FBI doesn’t have the resources to even investigate.
Identity theft is one of the fastest growing crimes, not to mention threats of terrorism, money laundering, drug trafficking, and a whole host of other serious threats to our country and security.
I’ll bet dollars to donuts that the lenders’ attempts to use the FBI as their own personal Gestapo to get homeowners to back off will fail miserably.
Time will only tell if my prediction is right on this one.
Tags: FBI, loan modification fraud, loan modification scam, mortgage modification scam
