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I’m Trying to Help My Neighbor With a Loan Modification On His Home. – Regina

“Dear Steve,

I am trying to help a neighbor out with a loan modification on his home, but Wells Fargo keeps dragging their feet, now he got a summons from their atty’s I am hoping you can suggest a loan modification service company that may help him through all of this, or where he needs to start to get help before the foreclose on his house….should he seek an attorney and what kind of an atty would work on this type of case????? Thanks for your help not sure where else to get help.

Do you recommend any type of loan modification company (ies) for his situation or an atty in a specific field?????

Thank you,

Regina”

Dear Regina,

When I answer these questions all I have in front of me is the information provided. Sometimes I have to take my best educated guess at the missing pieces.

In this case I’m assuming that the summons might be actually a notice of foreclosure.

So we know your neighbor is significantly delinquent on their mortgage. That can actually hurt the chance of getting a loan modification.

Have you considered the obvious? Maybe your neighbor simply can’t afford their home anymore for some reason?

Let’s say you managed to postpone the sale of the home. Then what. What’s the plan for bringing the mortgage current and making the regular mortgage payments?

There is no requirement that any lender needs to modify any mortgage. You are left with either they do or you can refinance the property. Based on the significant default on the current mortgage I’m not sure how a refinance of the current amount owed is either possible or affordable.

Even if your neighbor files a Chapter 13 bankruptcy to stop the foreclosure, they would have to make at least the regular mortgage payment plus pay bait of the past due balance each month. I think we already demonstrated that’s not doable.

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I would suggest you contact a local HUD Housing Counselor and talk to them about options before you start throwing money at a bad situation. Sometimes these things just don’t end as we want them to. And sometimes the kindest thing we can do is help people preserve their cash to move on to the next stage of their life rather than throwing more money at a situation which has no good resolution.

Please post your responses and follow-up messages to me on this in the comments section below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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