In our last segment we started drilling into the cache of data available in the latest federal Consumer Complaint Survey Report (consumerfed.org), compiled by the Consumer Federation of America (CFA) and the North American Consumer Protection Investigators (NACPI).
Several of the top complaint categories involved homeowner, finance and mortgage issues, so we'll continue looking at some specific concerns to help protect you, your home and finances from unscrupulous schemes.
Many consumers having trouble making ends meet have been seeking modifications of their mortgage agreements. But what should be a simple fix has often turned out to be a nightmare.
The Montana Office of Consumer Protection reported that one consumer who was approved for a loan modification made three trial payments. But when the permanent modification paperwork finally arrived, it had an accounting error.
After alerting the bank of the error, the consumer was put back in review for months. And he was told to continue trial payments, which caused him to fall farther and farther behind on his loan principal.
Then he received a denial letter, in error. After months of struggle and with the assistance of the consumer agency, he was granted the correct permanent modification, which significantly reduced his principal and payments - enabling him to stay in his home.
A complainant to the Louisiana Attorney General’s Office similarly tried for 18 months to work out a loan modification with a major national bank, repeatedly filling out documents and sending them as instructed, only to be told that more was needed.
After being notified that his loan modification had been approved, he got another call from the bank telling him that he had in fact been turned down. And, his home was placed into foreclosure, despite the fact that he had successfully completed trial payments and had a friend who was prepared to provide financing.
If you find yourself in a similar position, or need help modifying a loan or avoiding foreclosure - no charge - go to makinghomeaffordable.gov. You can also talk to a certified housing counselor at 888-995-4673.