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Cancelling Loan Modification

Submitted by marysplace2 on Thu, 09/03/2009 - 16:02
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I will try and make this short, when my husband lost his Job back in Nov. we talked about doing a loan modification. we first contacted our lender they took our information and about 30 days later told us we didn't qualifiy. about a week later we get a call from a company that did do a refi for us and ask if we were intrested in doing a modify we said sure so they turned us over to LMOA. here is were the nightmare begins this was before I found this site. My husband started the process gave them 3k now at this time we weren't behind on our mortgage. six months later we have lost our home. LMOA did nothing but caused us greif. We did cancel with LMOA and wanted our money back. (wishful thinking.) Our Rep who rarely called us we had to call him to find out the status which was they were talking to lender. our lender called us wanting to know when we were going to make a payment, we informed them we were going though a third party to do a modify they the lender told us they didn't work with third parties. we informed LMOA and insisted we not talk with the lender and said that's there job to say that but they will work with us. Our lender sent us paper work to modifiy at 5.6% (10 days to accept) we contacted LMOA (big mistake) they said send them the paperwork but don't do anything because they will get us a better rate, and the lender was running scared. I think you get the jest on how this is going. when we informed our rep at LMOA that we were served foreclosure paperwork we were told now we have priority. Now that we cancelled they are using what the lender sent us saying they got us a modify that we turned down. My question, if I start a loan modification then decide to cancel the process. can I request all documents and communication between the loan modification company and the lender?
We were told time and time again by our lender they don't work with third party companys. and the third party company LMOA kept telling us don't talk with the lender it will only hurt the negotiations and they always say they don't work with third party companies.
Sorry for the longness of this post.
My husband did find a job but for much less then what he was making. but something is better than nothing.


Hi Mary, I'd suggest that you again speak to the lender and begin second round of negotiation for loan modification. Hope it'd work this time.
Next, if you want to take action against LMOA, you can file complaint against them with the state authorities. You may ask LMOA to provide you with the documents (or may engage an attorney) containing the proof of negotiation between them and the lender . However, I doubt they would disclose those papers to you.


Submitted by SC on Fri, 09/04/2009 - 03:24

SC

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We talked with the lender and they now won't budge because they said they offered a modification and we didn't respond in the time frame they gave, so we have to wait a year before they will talk about doing another modification. I also received a call from LMOA to setup an appoint with the owner on the requested documents. I have filed with the BBB looking into filing with the AG


Submitted by marysplace2 on Fri, 09/04/2009 - 13:53

marysplace2

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The end of the story on the loan mod. LMOA (Loan modification of America) responded to the BBB and offered us a refund of some of the money we paid them. we agreed to the refund. in the whole process we lost our house. we moved into something more affordable for us. I will somewhat miss our house. but on the ohter hand not because it was getting old and hard to keep up on. I have learned alot from this site and now I question and try to research everything before saying yes.
Thanks to all who have given me very good adivce.


Submitted by marysplace2 on Wed, 09/30/2009 - 11:43

marysplace2

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