Mortgage Modifications Continue to Lead to Foreclosure in Miami and elsewhere as Banks Renege

March 25, 2011

Another major investigative piece -- this time by NBC 13 in Indianapolis -- has found that banks continue to play devastating games with homeowners, in some cases approving mortgage-loan modification only to use the arrears that result as a reason to foreclose.

In all seriousness, we implore those seeking to stop mortgage foreclosure in Miami-Dade or Broward counties to consult with an experienced and aggressive Miami foreclosure defense lawyer to help ensure a family's rights are protected throughout the process. Criminal investigations into the acts of banks and mortgage companies have been opened in all 50 states and it is long past the time where a homeowner can expect reasonable treatment in dealing with their bank -- if such a time ever existed.

Our Miami Foreclosure Lawyer Blog reported on a similar case recently -- where a homeowner had an agreement from the bank -- at least twice -- only to have the bank go back on its promise or sell the loan to a third party that then refused to honor the deal. If you don't believe us, believe Rolling Stone, which, in reporting on the foreclosure crisis in Miami and elsewhere, said: "Everything is fuc$ed up and nobody goes to jail."

In the Indianapolis report, the $50 billion government modification program (HAMP), has done little more than provide banks with another avenue to make a profit at the expense of homeowners. One mother, raising a son with significant medical issues, sought a modification to lower their monthly payments. After three months of complying with paperwork requirements, the bank lowered the family's payments from $1,500 a month to $900.

After a "trial period," the bank rejected them and told the couple they had to pay $5,000 in arrears or face foreclosure. They used money from their 401(k) only to have the payment rejected by Wells Fargo, according to the report. The couple was told to pay an extra $100 a month for the rest of the year and then a balloon payment of $19,000 or face losing their home.

Unfortunately, this is NOT an uncommon story. A government review of the program shows just 466,000 had received modifications of the millions who have applied.

Hire an attorney. Negotiate from Strength.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs|Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.