Bank Says “Too bad” about failed Loan Modifications

In an article in the Minneapolis Star Tribune, writer Chris Serres blasted the banks for luring people into believing they’ll get help, when help is far from what they’ll get.

Here are excerpts from that article: 



”A spokesman for J.P. Morgan Chase said the risks are disclosed to homeowners. Under the trial modification signed by homeowners, J.P. Morgan reserves the right to terminate the plan at any point and begin foreclosure. The bank also reserves the right to determine the final amounts of unpaid interest and any other delinquent amounts.”

“We work with customers to try to keep them in the home whenever possible,” said Thomas Kelly, a bank spokesman. “And the HAMP documents clearly explain the steps along the way.”

In other words, the banks are saying that homeowners “know the risks,” so if they’re deep in debt and lose their homes after a loan modification fails, its their own fault.

The lesson: Before you sign anything, read each document carefully. If the paperwork contains even one sentence that you don’t understand, have a qualified real estate attorney review the paperwork before you sign.

If you’re now attempting a loan modification and being put through a wringer, call us at 619-929-1413 or write td@tomdunlap.com. We can offer you insight as to your chances of success, and what to do next to avoid foreclosure.


Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.