Loan Articles

Banks are reluctant to offer homeowners modifications, because they do not want everyone to try to modify. When our attorneys work with your bank, you have the highest chance of a successful modification. In this excerpt from By Susan Chandler at the Chicago Tribune reporter, this is discussed.

For months, mortgage lenders, banking groups and legislators have been urging struggling homeowners to reach out for assistance before they are in too deep. But in reality, many lenders are reluctant to modify loan terms unless a borrower has missed several payments.

"It's a Catch-22. Banks don't want to open the floodgates to anyone who wants to modify their mortgage," explains Jeremy Brandt, real estate investor and chief executive of 1-800-CashOffer. "I would never tell anybody to [stop making payments] to manipulate a bank, but the banks' attitude is, 'We're not going to negotiate until it's clear you can't make your house payment.' "

Growing problem

The size of the mortgage problem has reached staggering proportions.

Five thrift-related servicers with the largest mortgage portfolios were handling payments on outstanding balances of $2.3 trillion at the end of March, according to the Treasury Department's Office of Thrift Supervision.