The Great Recession of 2007 and 2008 was the worst recession U.S. citizens faced since the Great Depression of the 1930s. Millions of Americans lost their jobs only to discover that the housing market crashed as well, making the value of their homes drop significantly.
Many homeowners tried to apply for home loan modificationsย in order to have a more feasible monthly payment while they searched for employment. In order to help Americans during this time, the federal government set up programs to help homeowners from going into foreclosure.
The Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) were enacted in order to encourage banks to offer home loan modifications.
However, numerous homeowners reportedly had their loan modification requests denied because they were processed improperly or they just went unanswered.
As a result, thousands of homeowners wereย allegedly forced to go into foreclosure simply because banks and loan offices did not follow the current federal guidelines.
Home Loan Modification Guidelines
Due to the large number of foreclosures, the U.S. Consumer Financial Protection Burearu (CFPB) set up specific guidelines that require banks and mortgage lenders to process home loan modification applications quickly and accurately.
According to the Real Estate Settlement Procedures Act (RESPA), if a bank or other home loan servicer receives a home loan modification application within 45 days before a scheduled foreclosure sale of the said homeownerโs property, then the mortgage lender must review the application and notify the homeowner within five days to inform him or her whether or not the application is complete.
Next, RESPA requires that homeowners are notified within 30 days of submitting their loan modification request in writing with a statement of which loan modification options are available to the homeowner.
If for some reason a homeownerโs request for loan modification is denied, the bank or loan lender must state specific reasons for the denial.
It is not enough to give general terms such as โbased on an investor requirement.โ Instead the bank must specifically identify the investor and the specific requirement that establishes the reason for denial.
Home loan modification applications that are denied based on the net present value calculation, must show the homeowner all the inputs used to make the home value calculation.ย
A denial notice must also state that the homeowner has a right to appeal the decision. Homeowners must have the appeal reviewed by different personnel than those who evaluated the original application. Homeowners who make an appeal must be told of the final decision within 30 days.
Homeowners are further protected from what is referred to as โdual tracking,โ which means that while a loan modification application is under review, the loan servicer cannot initiate foreclosure proceedings until the mortgage loan is more than 120 days overdue.
If a homeowner submits a loan modification application before the bank or other lender has started the foreclosure process they are prohibited from moving forward with foreclosure proceedings.
Home Loan Modification Class Action Lawsuit Investigation
Homeowners who applied for a loan modification and were denied without their bank following these federal guidelines may be able to join a home loan modification class action lawsuit.
Some of the banks and mortgage services under investigation for potentially violating federal home loan modification guidelines includes: Wells Fargo, Bank of America, Citigroup, US Bank, JP Morgan Chase, Nationstar Mortgage and many others.
Contact a home loan modification attorney to find out if you have legal claim.
Join a Free Home Loan Modification Class Action Lawsuit Investigation
If you applied for a home loan modification to avoid foreclosure and were denied because your bank didnโt follow the current mortgage modification guidelines, you may be eligible to participate in a class action lawsuit to resolve this problem:
- Bank of America
- Nationstar Mortgage
- Ocwen Loan Servicing
- Seneca Mortgage Servicing
- Green Tree Servicing
- PHH Mortgage
- Select Portfolio Servicing
- PNC
- Citigroup
- US Bank
- Walter Investment Management Corp.
- Cenlar
- JP Morgan Chase
- Wells Fargo
- Flagstar Bank
- GMAC
- One West
- Caliber Home Loans
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9 thoughts onHome Loan Modification Requests May Be Unfairly Denied
I have been waiting for an attorney to contact me with regards to this and no one has called. Your join now button doesnโt allow a connect or phone number. How do I get an attorney for my completely papertrailed case against Nationstar? Please call asap!
We have a number of law firms who regularly preview submissions. Because you werenโt contacted doesnโt mean you donโt have a case, or that you wonโt be contacted in the future. It just means that the attorneys we work with may have decided to work with another potential plaintiff at this time. You are always welcome to consult your own attorney, and should you choose to go that route, we recommend checking out http://www.consumeradvocates.org/find-an-attorney. Once there, you will be able to search a broad database of specialized attorneys in your area that you may consult.
Thank you for reaching out to us with your concerns. We here at Top Class Actions are so grateful for viewers like you, and wish you the best of luck in your pursuit of justice!
Thank you for the information here! I knew it was going all wrong by the ill feeling in my stomach each time I would have to fill out all those formsโฆ 5x is too many and tell us not to date them, just sign and send gave me hives. Ugh, even the memory sends bad vibes!
Keep up the ggod work and honest feedback for us! Thx again!
Modification was through M&T Bank which I thought they were listed when I first saw this. Continually asking for additional information which was previously supplied. Was contacted about my home being in foreclosure. Very, very frustrating. Please add M&T to this action suit I believe it is definitely warranted. Have been dealing with this since September 2017
The TCA Home Loan Modification investigation is no longer active. Please keep checking Top Class Actions for updates. We will let our viewers know if the investigation opens back up, or if a class action settlement is reached.
I has lost muy tome un 2010-2011. The bank would not give me a modification, and i was working 5 part time jobs. I never got a chance to file because i was going through a divorce and i was also in and out of the hospitals cause i had broke my back. I did recieved money from them and on the letters it stated that icould still have a case and that the money was in no way a pay off. I really need help with this and if i still have time to pursue a case with this lawsuite.
Unfortunately, this particular investigation is no longer active. We offer a submission form on our website for you to fill out if you are seeking class action legal help. Attorneys will then review your submission to determine if you have a case. If they feel you qualify, they will contact you directly. You can submit your information here: https://topclassactions.com/start-a-class-action/.
I forgot to leave my email address. This is regarding the PNC lawsuit denying modifications to home owners.
Ruby Nieves
Is it to late to file a lawsuit against PNC? Our modification was denied, received numerous people from PNC calling us asking for same info, they lost info, PNC wanted us to pay them a lot of money up front first or we will be denied. While still trying to get a modification they listed our home for people to bid on our house. Strangers were coming up to us asking about our house and PNC still denied us, so we shortsaled and this person bought our house for $350,000,00, when we bought it for $745,000.00. 2013 was when the house was sold. I wrote a letter to president Obama and we received a letter from one of his appointees that Our case will be Forward to one of the departments to assist us!