Loan Modification Attorney Damian Nassiri and his client appear above on KCAL Channel 9 news.
Our Orange County, California foreclosure lawyers are coming into contact with clients on a daily basis who have been on a HAMP trial loan modification plan with lenders such as Chase for up to 12 months or more without being extended the permanent modification. Alternatively, we see the client denied after making several months payments on the trial plan. One client made 12 trial plan payments on time and was still denied despite the fact that the client’s financial situation is the same or very similar to what it was when the client was approved for the trial plan.
So in this sense, the lenders are representing to the State that are following HAMP guidelines when in fact they are just paying lip service with respect to many of the borrowers we see.
Here are some of the reasons we are hearing for the wrongful loan modification denial. If this is happening to you, call our loan modification lawyers today at 949-375-4734. Please, DO NOT call the 800 number at the end of the video – that is an old number. Please, CALL 949-375-4734 to speak with attorney Damian Nassiri about your loan.
LOAN MODIFICATION EXCUSE #1: The “Net Present Value” excuse– The trend now is for lenders to approve a borrower for a trial loan mod plan, and then deny the client a permanent modification because they “failed the Net Present Value test”. However, since nothing has changed with many of the client’s financial situations, we cannot believe the bank would not offer a permanent loan modification when they qualified them for a trial plan. When we requested the values being used for the NPV test we found that the lender was using incorrect data that did not reflect our client’s true financial profile. In my estimation, the NPV test should always come back in favor of not foreclosing because a loan modification will almost always result in more money to the lender because the borrower still owes much more than the fair market value, even under a good HAMP modification.
Q: Can you get me a loan modification ?
The “homeowner missed a payment” excuse – In addition to the Net Present Value problem, the lenders will often say that the client is being denied for a permanent modification because our client had missed a trial plan payment. This also is not true and we showed the bank proof by faxing bank statements showing the payments were timely made and checks were cashed by bank. Then the lender told us that the borrower wouldn’t get a permanent loan modification because the client did not submit all the requested paperwork. This also is a fabrication because we have faxed them everything they requested and we did this more than once. We often find the banks lose the faxes we send and they don’t get uploaded into the bank’s system. For all of these reasons, this client will be filing a lawsuit against Chase for unfair and deceptive business practices. Our loan modification lawsuits often force the lender to deal with our clients and take a closer look at offering a permanent loan modification.
The “declined for excessive forbearance” excuse – In addition to the above, we also find that banks are improperly denying homeowners for a permanent modification because they fail to defer up to 30% of the unpaid principal balance. Under HAMP, the servicers are directed to take certain steps that result in a modification payment that is 31% of the borrowers gross monthly income. One of the steps they are to take is to defer up to 30% of the unpaid principal balance, which results in a lower monthly payment. Under HAMP, one of our clients needed to defer $50,000 which was only one third of the 30% deferment. Instead of deferring $30,000, the bank told us the borrower didn’t qualify. The lender could have deferred up to $150,000 but instead told our borrowers they didn’t qualify. This client will also be filing a lawsuit for unfair and deceptive business practices.
If you believe you have been wronfully denied a trial or permanent HAMP loan modification, call our foreclosure lawyers today at 1-949-375-4734 to see if we can help you stop foreclosure and get a loan modification.