Update from the Foreclosure-Based Economy 0
How to keep foreclosures moving along:
It is quite simple, really. Tell persons they have to stop paying their mortgage so they can be considered for some type of mortgage relief. Then relieve them of their homes.
Both contacted the bank before even missing a payment to see what steps to take, because they’d taken a hit to their income. Both say Bank of America employees told them they’d have to fall at least three months behind to be considered for a modification (advice that is both inaccurate and frequently given). Reluctantly, both did so.
As a result of missing payments, both soon found themselves facing foreclosure. But at least the modification process had begun, too.
Of course, it went slowly. Like millions of other homeowners, they waited months and months for an answer on their modification applications and sent in the same documents over and over again. Despite sending in those documents, both were told at one point that they’d been denied because they hadn’t sent in the required documents (another extremely common problem).
Finally, last month, both had their homes sold at a foreclosure auction, despite the assurances of Bank of America employees that that wouldn’t happen until they’d received a final answer on their application for a modification.
“The next thing I know, a guy is knocking on my door saying his boss is at the courthouse buying our house,” said Peterson.
What makes foreclosure particularly unnecessary in both cases is that Pinkerton and Peterson had made a point of telling the bank they had the means to bring the loan current even if they didn’t get a modification. And unlike many Californians, both had the option of selling the home to pay off the mortgage because their homes are worth more than they owe on their mortgage.
Now that’s mortgage relief.
Afterthought:
The headline at the link refers to bank “errors.” But aren’t “errors” supposed to be infrequent, even in baseball?
