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we are having trouble with loan modifcation and our mortage

 
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Customer Question

we are having trouble with loan modifcation and our mortage company they say they will not talk to us about modifcation untill we pay 8700.00 up front we have been trying since april and the amount has gone up twice since then, they say we are in forcolsure but have no date of filing and we have not recieved any paper work what to do

 

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Country relating to Question: United States
State (if USA): Pennsylvania

Already Tried:
we have sent paper work twice and have called them ever 10days for an update on loan we were justed told about the money and forclouser on tuesday

Submitted: 296 days and 5 hours ago.
Category: Legal
Value: $28
Status: CLOSED
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Expert:  LegalKnowledge replied 296 days and 5 hours ago.

Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

I certainly understand your concern. Once the lender actually forecloses, you will be served with a summons and complaint, putting you on notice that a cause of action has been filed against you and that you need to respond. As far as the issue with the Loan modification, the lender can request that money be paid up front, to modify the loan. If the money is not paid, the lender does not have to agree to a loan modification at this time. This is not to say something will not be agreed upon down the road but if they wanted some money up front, it should have been stated in the loan modification paperwork ,which they wanted you to sign, as a condition for it. If they do foreclose, you can always ask, if the court does not automatically require it, that the case be sent to mediation. It would be at that time, which you can ask about a government loan modification or in-house loan modification, which would not require the large down payments but rather factor it in to the new loan, which could be paid over time.

Customer replied 296 days and 5 hours ago.

we have never signed paperwork it has all been done on the phone and every time we call they say in review call back in 10 days this has been since April when we 1st know we were going to have problems making the payment now they are telling us they want money we told them if we had it we wouldn't need there help they told us to beg for it from relatives so we tried for a loan and found out that the mortgage is not showing up on our credit so we have no credit bdad or good

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Expert:  LegalKnowledge replied 296 days and 4 hours ago.

I certainly understand. It is not uncommon for a homeowner to continuously call back the lender, trying to get an update on their loan modification. This was the reason that I suggested that parties who are often involved in the Foreclosure process, ask, if not already ordered by the court as a condition to the foreclosure, that the case be sent to mediation. At that point, a lender representative with the authority to settle the case could be present or over the phone and tell you on the spot, if you would be approved for the loan modification. Like you stated above, if you had $8700, you would not be in this position but if you are unable to obtain it, then you need to ask to be considered for a loan modification that either includes it or does not require it. Whenever you speak with them, you certainly want to obtain the name of the person you deal with, so there is a paper trail and accountability, on their end.

 
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