Loan Modifications and Short Sales

I come across many Miami homeowners that are trying to get their mortgage loans modified. I hear over and over again what a nightmare it is to get this accomplished. I recently tried to help a dear friend of mine and it opened my eyes on how difficult and time consuming this process is. Don't get me wrong, many succeed, but it's a tedious endeavour. We started a year ago submitted the required paperwork, every time I made contact they asked for more documentation, none that were originally on their list of required documents. We went over and over with this situation. All the documents are sent via fax, I use http://www.myfax.com/ and I have confirmation of all the paperwork that was sent and successfully received by the lender, but of course, many of these transmissions are lost in their system! Every time I spoke to a customer service rep or even an account manager (person handling your file), they all contradict themselves. For instance, some say that the sale date is on hold, others explain that the sale date is never on hold until the modification is approved. I participated in a meeting with account managers from Bank of America, several months ago, and I remember them saying that during the short sale process the property continues going through the foreclosure proceedings and it's not put on hold. But, then again, you get different answers from everyone that you come in contact with.

Another thing that you must keep in mind is that once your mortgage is in default they expect the full amount, plus the late fees, all in one lump sum. For instance, if you are behind on your mortgage payment for six months, they require the full six months plus the fees all at once, in order to bring your loan current. No payment plans will be considered, so every homeowner must think twice before defaulting, because there is no turning back!

I saw this video a few months ago referencing Modifications and Short Sales, it's quite interesting:

This makes a lot of sense, doesn't it?

Anyhow, I really feel for these homeowners who are struggling to get these modifications approved. I can't wait until this mess is all cleared up, maybe once it's over, everyone will know the correct way of working these accounts.