Are Modifications not happening because of disorganization?

The answer is YES! Or is it malicious? A recent article at ProPublica talked to homeowners who were foreclosed on while in the modification process. Some were able to get the reserved and some not. Propublica is giving the banks the benefit of the doubt. I do not. I think this is done with intent. Do the banks really care about helping you?

At what cost? After the sheriff sale, the reversal is going to cost someone (the bank may have to pay but who does that cost in today's bail-out situations?. Here is an excerpt from the above mentioned article:

Hill was able to avoid eviction ? for now. Chase reversed the sale by paying the man who?d bought the home an extra $19,500 on top of the $86,000 he?d paid at the auction.

And it's happening in Minnesota too. We're working with a client and their mortgage company, Saxon, who continually loses simple paperwork like the authorization to release information so we can talk on our clients' behalf. We have faxed and emailed one simple form no less than 26 times with electronic confirmation that it has been received.

And then there's the email I received last night. The person is working with Citi trying to get a modification. After going through multiple times dealing with Citi losing their paperwork, they were able to get a sheriff's sale suspended. But, whoops.... "So, the representative I spoke to on April 26th told me that I could reopen my files for the modification since I still qualify if I just fax in the documents and they'll suspend the foreclosure on my home. I faxed in the documents, they confirmed receipt of the documents, and yet my home was sold in the foreclosure sale on April 27th!"

I asked you at the beginning of this post if the banks really care about helping you. Really, I would like to know what you think. My experience has been that they do not. I can get them to modify (sometimes) and short sale (99% of the time) but I don't think it is because they care about helping... in those cases, I think they strongly believe they benefit... not that it is the right thing to do. You tell me!

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