QUESTION: Nine months ago we received a loan modification, but our bank later sold the loan to another lender. We have continued making timely payments, but the new lender won’t recognize the modification and has been sending us threatening letters. We have called and explained, to no avail. What can we do to fix this?
ANSWER: Banks often sell loans to one another, and each sale can be an adventure for the borrower. The most important thing that you can do is send in your payments on time and document all communication that you have with your new lender.
You should send the bank a copy of your loan modification paperwork by fax or certified mail - and be willing to send it again and again, if necessary. Call often, getting the names of the representatives you speak with and writing down what they tell you.
Always stay calm and polite, no matter how frustrating this experience can be. At the same time, don’t be afraid to be persistent. Also, keep in mind that the problem could be different than what you originally thought.
For example, you may think the lender is just ignoring the modification, but instead the issue may be that the bank doesn’t have your insurance information and bought you a new policy, which caused your monthly payments to rise.
You should be able to get this resolved on your own. But as long as you document everything, your lawyer will have the tools he or she needs in case it comes to a lawsuit.
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.