When homeowners had a hard time dealing with the aftermath of the recession, many sought out the help of financial institutions as a mean of keeping their homes while they fought to regain their financial footing. One option for many struggling Florida homeowners was to seek out loan modification programs. While some found this a helpful option, others were unknowingly the victims of trickery.
The U.S. Consumer Financial Protection Bureau issued a report recently that points to wrongdoing across the board for some service companies. The problems and wrongdoing outlined was applicable to student loan providers and mortgage servicers. One problem found is that some service providers purposely delayed loan modifications.
One other major problem documented was that the loan modification agreements of some lenders were never executed as they should have been. The terms were later be changed. These terms affected the payments of the people who were seeking loan modifications. The CFPB has initiated legal claims against a few companies accused of wrongdoing.
For any Florida homeowner, the quest to seek help and get a lower mortgage payment can be very confusing as it comes about during a difficult time. A loan modification can help lower payments and help homeowners get a lower interest rate for their loan. For many, this may be the only way to keep a home after a rough financial patch. However, anyone seeking a loan modification may benefit from support and guidance concerning the laws and how the process works in order to avoid becoming a victim of miscommunication or mishandling of his or her loan application.
Source: Reuters, “U.S. consumer watchdog finds ‘illegal’ acts in mortgage, student loans“, Elvina Nawaguna, Oct. 28, 2014