Look, it is this simple. All those trial payments you make go into suspense accounts.

During the time you are making the payments, late fees are adding up, you are being reported late to the credit agencies and the amounts reduced in your payments are adding up as well.

For example, you had an original payment of $2,000 and your new loan mod payment was $1,400.

First, lets say you have been making your trial payments of $1,400 a month for ten months.

During that time, you are accruing a monthly $100 late fee since you aren’t making your normal payments.

On the 11th month you are told you do not qualify for whatever reason and now you are told you need to come up with $6,000 to become current, which is exactly the reduced amount times ten, $600 times 10 = $6,000.

On top of that, your mortgage servicer has reported you delinquent for those 10 months even if you were current before entering the “modification”.

Now they go to foreclose and you know what the real kicker is? You get an amounts due and owing from a robo-signer and it says you owe $24,500 for non-payment and fees for the past ten months, delinquent $21,000, attorneys fees $1,500, title search $300, service $300, bpo, $300, etc…

But you say how is that?

Well lets do the math.

You had a payment of $2,000 due every month and you did not pay it. Then you accrued $100 a month in late fees.

Add all the “foreclosure fees” on top of that and there you go.

But what about the $14,000 I gave in trial payments over the last 10 months…

Yea, exactly, what about those payments…

Gone into the servicer abyss…

By Dina ElBoghdady
Washington Post Staff Writer

After Valarie Stovall fell behind on the mortgage on her home near Hagerstown, her lender agreed in April to slash her monthly payment by $300, and she immediately started paying the reduced amount. That’s why, Stovall said, she thought nothing of the yellow flier she ripped off her screen door as she returned from the grocery store one afternoon last July.

“Then I read it and went ‘Oh my God,’” she said. “It was a notice of eviction.”

Across the country, struggling homeowners are increasingly tripped up by mortgage lenders that press ahead with foreclosures regardless of any effort they make to provide borrowers with relief on unaffordable mortgages.

Amid the worst housing crisis since the Great Depression, mortgage companies have established a dual-track approach toward troubled homeowners, negotiating with them over loan modifications while trying to seize their homes.

Full article here;


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