Amid our country's mortgage mess, homeowners continue to fall victim to "Loan Mod Hell!" Borrowers are being victimized and no one knows whose friend or foe! So who's the real scam artist, the loan mod attorneys out there, Fannie and Freddie, or your mortgage servicing company? In a recent Washington Post article Valarie Stovall tells her story of Bank of America's reach out and snatch program. Similar to other lenders practices, major banks continue to say loan mod applications are under review while borrowers are on a trial mod FAST TRACK to a foreclosure sale date.

In addition to robo-signing foreclosure practices, the nation's largest banks apparently have no control over their departments. While one department appears to be helping their borrowers get a more affordable mortgage payment the other is escalating foreclosure proceedings. I mean seriously, they can't just look at their clients financials (W2's/P & L and tax returns) and determine if their qualified for the government's HAMP program or not? They certainly didn't have a problem expediting their original loanapplication extending credit and funding loans during the refi boom, did they? Why should this be any different unless there's an ulterior motive!

So What Should Borrowers Do? Homeowners struggling to make their mortgage payments should consult a litigation or bankruptcy attorney at the earliest sign of a struggle. A bankruptcy attorneycan help you determine if you can still afford your lifestyle or if you need to make some changes. If your mortgage payment (Principal, Interest, Taxes & Insurance) is less than 31% of your gross income won't get a loan modification. If you're not making enough money to qualify at 2% principal and interest amortized over 40 years won't get a loan mod either. Additionally from what we've seen, even if you do, your lender doesn't have to do squat and can change their mind due to being NPV positive or negative.

What Does Our Government Have To Say? The government says, and has made a point for us to tell you that you should go directly to your lender and work with them, but that's apparently turned to a fruitless effort for many. Recently we wrote a story about HAMP Trial Mods and the secret to unlocking the NPV test. We discussed the fact that once you accept your lenders trial mod offer and think you're home free, you could end up homeless. Additionally, the President's top housing official said that lenders are within their rights to resume foreclosures this month despite allegations that they erred in processing documents. The President then announced he will do nothing to frustrate the lenders foreclosure process after encouraging borrowers to attempt workout with their lenders.

What's the Bottom Line? Just like anything else, proceed with caution! Do your own research and don't think for one single minute your lender has your best interest at heart. Lenders and Mortgage Servicers are good at two things, lending money and collecting debts. The banks were bailed out with TARP funds and were to administer HAMP for homeowners…. Kind of like leaving the Fox to guard the hen house, you're kidding me right! The bottom line is that we are bankruptcy attorneys and have a great deal of insight as to what happens down the road to foreclosure. It's not nice what these lenders are doing to their clients. I mean seriously, either you're going to get a loan mod or you're not. Mean time, the double pronged approach the mortgage companies are taking is downright predatory. If you want to know your options contact us today and let us take a look at your situation. If we can't help you we can at least point you the right direction. The banks have attorneys and so should you. For a no obligation free consultation contact us today. http://www.800debtsettlement.com/