Well, big surprise. You’ve filed for a mortgage modification but you’ve stopped making your mortgage payments. Now you are surprised your bank is still foreclosing on you?
Life does not end just because you’ve filed for a mortgage modification. Would you expect your cell phone company to stop expecting its payment every month? What about your car dealership?
My heart does not bleed for people who bought more mortgage than they could afford. I don’t feel bad about people getting foreclosed on after they stopped making their mortgage payments.
Banks have started foreclosures on more than 2,500 homeowners still in the process of applying for mortgage modifications, according to a new survey of 96 consumer attorneys.
“People every single day are being put into foreclosure while they’re waiting for modifications,” said Ira Rheingold, director of the National Association of Consumer Advocates, which conducted the survey in November with the National Consumer Law Center. “It’s all related to the broken mortgage servicing system.”
The mortgage-servicing system found itself in the spotlight this fall when employees at big banks admitted in sworn depositions to signing off on foreclosure filings without verifying any of the information. Banks and the government have insisted it’s just a paperwork problem and no homeowners have been harmed.