Getting a Loan Modification Can be Such a Drag

Day 410 of My Financial Freedom Countdown

We are going into our 13th month of attempting to get a loan modification on our primary residence. Again we were declined because we have a business card charged off with the same bank that services our mortgage. So it looks like this will be continuing to drag on for God knows how long.

If this charge off was with another institution this would not even be a question or if the loan was held with Fannie Mae rather than Freddie Mac. All loan mods are not considered equal as it may seem. We were able to get a mod on our rental property with the greatest of ease because that loan was with Fannie Mae. Because the primary residence is with Freddie Mac we're a no go. Fannie does not look at outstanding debt while Freddie does.

Even though one looks at debt and the other doesn't, why is the bank throwing the charge off in our face? It doesn't make sense to me and seems like it is just another excuse. We have already called the president of the mortgage division's office, which we have been receiving call backs, but that does nothing because we are back at step one anyway. We did however receive another call today form a new negotiator. We will be calling him tomorrow to see what he has to say.

I am thinking our next step is to contact our state senator, who is Harry Reid, and discuss this travesty. The fact that all loan mods, regardless of investor or loan program, are not the same is outrageous. There is also not much out there laying out this type of scenario. The public needs to be made aware of this, as I don't feel that this information is public knowledge. Am I to be the guy who has to start a crusade to get this fixed? Even if we do not get a loan mod in the end something needs to be done about this.

My wife did find one bit of hope out there. According to Freddie Mac, if the borrowers debt is greater than 55%, the borrower must take a free debt counseling course in order to qualify. This may be our saving grace as this as yet to be offered to us as an option. We'll have to see what this new negotiator has to say, but I feel a war coming on.

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