Does your bank owe you money? A new federal law banning loan-mod misdeeds could put money on your pocket.
You’ve been in your own personal loan mod horror story: Ask the bank for help. Submit a loan mod packet. Submit it again. Submit it again. Update “stale” documents. Submit another packet because they “didn’t receive” the first one. A bank rep tells you not to worry about your foreclosure. Another bank rep tells you the house will be taken next week. You don’t now who to trust or believe, and all you want to do is work with a bank that refuses to work fairly with you.
Under old law, there was nothing you could do.
But then the federal government stepped in. And although we’re as surprised as anyone, it looks like this time they’re really here to help.
New federal law bans all these loan-mod shenanigans you’ve been suffering for so long. No more paperwork treadmills. No more “lost” documents. No more dual-tracking. No more getting passed around from rep to rep like a bad cold in a kindergarten.
Under these new regulations, if a bank offers any loss mitigation programs at all, they have to deal with you fairly. They have to tell you exactly what documents you need to submit. They have to tell you right away if there’s anything missing. They have to give you a single person to talk to about your application. And if they deny your loan mod, you even have a right to appeal. And best of all, if you get your application in on time, they can’t seek foreclosure judgment or hold a sale while any loss-mitigation application is pending. (This means any. Loan mod, deed-in-lieu, short sale, cash-for-keys.)
So what happens if—or when—the bank breaks the rules and fails to keep you informed about your application, or seeks a foreclosure with the left hand while the right hand offers help? Each of these new regulations allow for a “private right of action”—lawyer talk meaning, YOU CAN SUE. You can sue for any actual damages you suffer, and if you can prove a pattern or practice, score a “bounty” in the form of statutory damages. And if you win, the bank pays for the attorney fees on top of that.
If you’re in a loan mod horror story, and want to force your bank to deal with you fairly, contact us today and tell us your tale of woe.