The family had resided in their Whittier‚ California home for more than a decade when the Great Recession hit. By late 2009‚ both parents in the family of five had been laid off. They cashed in their 401K plans to stay current on their mortgage.
The story of what happened next is deeply troubling‚ not only for the ordeal this family endured‚ but for the fact that it’s reflective of what hundreds of thousands of others have been forced to go through as well.
Our Woodland Hills foreclosure defense lawyers also know that it’s a story that demonstrates how important is for homeowners to never assume – even now – that you can go toe-to-toe with these banks in a loan modification proceedings‚ or any other similar effort‚ without the benefit of an experienced attorney.
It’s not always a job loss. Sometimes it’s a bad car accident or illness that puts one out of work. Sometimes it’s simply bad timing. For a multitude of reasons over the last several years‚ people have been turning to their banks for help in lowering their monthly mortgage payments. What they find is that they are soon caught in a nightmarish web of bureaucracy that drags on for months or longer and gets them no closer to keeping their homes than when they started. The worst part is that these institutions sometimes make homeowners feel as if they somehow deserve this treatment –thus losing track of the fact that many home prices were grossly inflated due to the mortgage crisis caused by the banks.
In this case‚ after the family’s savings had been drained‚ the family contacted the bank in early 2012 for a home loan modification. It was the first of six requests they would make within a year-and-a-half. In that time‚ the bank claimed the family’s paperwork was never submitted‚ when it was. Then when she re-submitted the paperwork‚ the bank claimed it was the wrong paperwork. (It’s since been revealed in by internal whistle-blowers that this was standard bank practice to get cases herded into the foreclosure process.)
Then after that‚ the bank claimed there was a tax lien on the home‚ so they couldn’t work with the family. Turns out‚ that was completely false. The couple had to get statements from the city affirming that there was no tax lien.
As the family struggled to stay afloat‚ they took jobs that paid less than their previous positions. But each time the husband got a promotion‚ the wife would inform the bank of the slight income change and this would result in the bank restarting the entire loan application. Each time‚ the bank would supply a different single point of contact.
The family has yet to get modification‚ with the new bank contact informing her the mortgage has to be current within 15 days or the case will be forwarded to foreclosure. The bank also contends it has no information on her previous modification requests.
If you are facing foreclosure in Woodland Hills‚ contact Cal West Law to schedule your free consultation. Call (800) 568-0707.
Our bank wants us homeless‚ July 8‚ 2013‚ By David Dayden‚ Salon.com