Home loan modification

I’ve been hearing from more homeowners who are frustrated by the customer no-service they’re getting from their lenders when they call to ask about a loan modification.

If you ask the government, you’ll be told (as I was recently) that great strides have been made over the past two years.

It’s true, but that’s cold comfort if you’re about to be foreclosed upon.

I had another conversation with my contact at the OCC today. He asked me to remind you that there are some specific steps you should take if you feel as though you’ve reached the end of the line with your federally-chartered bank and/or the HUD-certified housing counselor you’ve been working with.

Assuming you’ve already taken those steps, consider the following:

1. File a complaint with the OCC's customer assistance unit. This page is part of the HelpWithMyBank.gov website that the OCC set up to deal with problems consumers have with the banks that are regulated by the OCC.
2. Get the complaint confirmation/case number. Make sure you save it somewhere safe, where you can access it at a moment’s notice.
3. Wait 30 to 90 days. This is the tough part. The OCC’s customer assistance unit is swamped, and while they’d like to get back in touch with 30 days or so, it probably isn’t going to happen due to sheer volume. However, if you are in imminent danger of losing your home, you should write “URGENT” on your complaint, which will help it be elevated in the stack.
4. If you don’t like the result, appeal. My source at the OCC says many consumers don’t realize they can appeal the decision of the lender through the OCC's customer assistance unit. But going through an appeal doesn’t mean you’ll get the result you want. Still, you will know that real people have evaluated your application at least twice, and I’m assured that if it’s close, the OCC will push for you to receive your modification.
5. If you still don’t like the result, hire an attorney. Alternatively, you’ll be able to stop a foreclosure (for some time) by filing for bankruptcy.