Loan Modification Needed

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 8, 2009 -- Megan Cavallari glances up from her stack of faxes and documents, proof of her efforts to save her home. She's been put on hold for over an hour as she tries to get details for a loan modification.

Finally, she's received on another line. Once again, however, it’s not a person- it's the "computer lady."

"Every report says the banks are concerned about us, and everything on the radio says they're assisting people in need," Cavallari stated. "But you call and call and call; you're not getting a voice. You're getting a recording."

Cavallari is like thousands of Americans dealing with impending foreclosure. But she says the trials of trying to save her home from foreclosure have exhausted her. She recently applied for bankruptcy and is departing her home with her young daughter.

The entire process has been extremely challengin, especially when people at the bank are not available to help. "You call them. After being on the phone with them, they send you to an automated lady. [Then] they send you to a Web site after you've been on the phone for an hour."

Banks and lenders say that they have had too many calls to deal with. They also claim that they are doing everything they can to help Americans in financial distress. Many calls are transferred to the homeowners' Hope Now hot line of 1-888-995-HOPE. The hot line is funded by the lending industry and is supposed to provide free financial counseling for those facing foreclosure.

Faith Schwartz, Hope Now's executive director, has stated that "We are working hard on that capacity issue. There are millions of people who want help, but there are also millions of people who don't need help but might call in on other issues. So I think servicers are dealing with extraordinary call volume."

About 250,000 homeowners completed mortgage modifications or repayment plans from their lenders in the month of February, according to Hope Now. The organization estimates that 3 million more Americans are 60 days behind on their mortgages and will need assistance to avoid foreclosure.

Yvonne Mariajimenez is an attorney with the nonprofit Neighborhood Legal Services of Los Angeles County. She says she works with clients who have tried and failed to reach their lenders on a daily basis. In less drastic cases, people are put on hold for 20 minutes. In some of the worst cases, homeowners may be on hold for up to 2½ hours and accomplish nothing as a result.

According to Mariajimenez, "Homeowners are calling. They're not getting calls back. The waiting time is ridiculous." "They [homeowners] called 800 numbers that went into a black hole."

Neighborhood Legal Services has collaborated with homeowners and banks, often meeting in person to bring about modifications. Mariajimenez believes that this strategy “…has proven to be better, but even so, they're [lenders] slow in reviewing loans and coming back with modification efforts.

"In the meantime, lenders are continuing to move forward with foreclosure," she lamented. "Even with thousands of people in foreclosure, we do not have anywhere near the advocates needed in order to deal with these homeowners on a one-to-one basis."

Maria Quesada, a single mother on the brink of losing her home, is just one more case that Mariajimenez has to deal with. Once her commissions in the insurance business began to disappear, she started calling her bank to negotiate a loan modification. After half a year, she's still waiting.

When Quesada does reach human beings at lenders, and not automated help, the typical responses are"call back in a week; call back in three days; call back, call back, call back."

Recently, Quesada learned that her home is to be auctioned off.

"I have to stay strong, but sometimes it's difficult when you're alone," she tearfully stated.

Release sourced: CNN.com

More information can be found online at http://www.modificationzoom.com

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