Loan-modification hassles frustrate Oregon homeowners
Lost paperwork, unreturned messages and conflicting information are magnifying the misery of homeowners in distress.
Requests to modify home loans and reduce mortgage payments, relatively uncommon a few years ago, have surged as borrowers struggle to avoid foreclosure. Many people requesting changes in their home loans say they’re getting the runaround from loan servicers — often national banks, who make the day-to-day decisions about modifying loans.
“Most housing counselors and advocates for borrowers will tell you they are submitting documents three, four, five, six, seven, eight, nine, ten times, and they’re getting lost,” said Diane Thompson, an attorney with the National Consumer Law Center, a national consumer group.
The slipshod handling of loan modification requests by loan servicers is “endemic across the country,” Thompson said.