Some Banks Won't Budge On Modifications

I think if I drew a picture of an average home loan on the chalk board, and showed even BASIC cost/profit/loss to my 12 year old, he would understand the need for modifications. However, regardless of how much financial sense a modification may make, some banks are still just not budging. Now these banks are becoming fewer and fewer as they are getting bought out by larger banks or going under because they opted to not help their customers.

We have a client that received a modification back in February, and even though the new HAMP program didn't come out until March 6th, they are saying that the homeowners can only get ONE modification during the life of the loan. WHAT? So if you gave me terms before there were guidelines, and now those guidelines are present and the terms offered were substantially less than what I should be receiving.....There are many lenders that even have a re-modification department, for people who have done previous modifications. The standard guideline is that there has to be an additional hardship that happens between the time they were granted their first modification, to when they are asking for the second. Now if people were baited into forbearance plans where their payments went up, then chances are they were unable to make that obligation. Common sense, "If I had a hard time trying to pay the $2200 a month, how am I supposed to come up with $2800 a month?". What makes PMC different is that we didn't accept that answer, we formulated a new plan of attack and executed it. Most companies would have called their client to tell them that there was nothing that they could do, but how they were keeping a large portion of their fees because they have time put into it "just read it, it's in the contract that you signed with us.......". Calling Penn and Teller........ At PMC, we have strict oversight on our agents to ensure that they push the envelope with EVERY client that we have.

"If you only have ONE shot at trying to get a modification after March 6th, why do people still try to do it on their own if everyone else is failing at it?" In a recent article it sited the Freddie Mac/Roper poll where it asked, " If home foreclosure affected you, what best describes how you would feel?" Here were the responses:
38% Scared
35% Depressed
9% Angry
8% Embarrassed
9% None of These

People who are having financial difficulties don't want to spend their last dollar, only to find out that they've been scammed by some company. As reflected, most people are scared. Scared of losing their home, scared of getting ripped off, scared of what the bank may actually say, scared of how their kids would be affected. This is a very uncomfortable position to be in, and with the media and various agencies just fueling the fire, it's very hard to know where to turn. The question of, "Why would I pay someone to do something that I can do myself?" will often come up. Well, there's a reason why there are "trades" in this country, and it's usually specifically for that. If you have a clogged toilet, you can get a plunger in lieu of a plumber. But if you're pipes are leaking, chances are you're better off calling a plumber, then trying to go to Home Depot to get pipe, pipe cutter, measuring tape, flux, solder, torch and propane and the "Plumbing For Dummies" book. If you have a basic question you need answered, call your lender and ask them. But if you need/want real help (leaking pipes), call the professionals.