This Guy Gets a $2 Loan Modification...or 1/2 off a Starbucks Coffee! :)

By
Real Estate Agent with Platinum Real Estate

Insult or Injury? or Both?

Actually, this guy favored well as most homeowner walk away from a loan modification pay MORE!

Yes, our Short Sale clients biggest gripe is that the loan modification that was presented them by their bank was an actual monthly increase…yes, pay more!

Isn’t that why we’re in trouble in the first place?

Here’s a good story from the folks at The Truth About Mortgage.com

 

Here’s another PR nightmare…

Wells Fargo reportedly offered a struggling homeowner a loan modification that resulted in just $2 off his monthly mortgage payment, according to an ABC news affiliate.

The Independence, Ohio-based homeowner, Mike Elewski, apparently got into trouble back in 2009 when the ongoing recession began to affect his business.

In August of 2009, he asked the San Francisco-based bank and mortgage lender to grant him a loan modification, but bank representatives said they only negotiate with homeowners behind on mortgage payments.

As a result, Elewski stopped making his mortgage payments, and before long, faced foreclosure.

Eventually a judge ordered mediation between him and Wells Fargo, and after mountains of paperwork and thousands in attorney fews, the bank offered him a modification.

Unfortunately, the loan mod resulted in just $2 off his regular mortgage payment, meaning foreclosure is likely imminent.

But alas, because the story is gaining steam, Wells will likely have to step in and give the man a better deal.

This seems to be the trend nowadays, make noise and get help.

A Wells spokesman did tell the publication it would never tell customers to miss payments, and noted that it was continuing to work with the customer to identify solutions that would allow him to retain his home.

Per the article, the Ohio attorney general’s office has already received 450 complaints involving mortgages since the beginning of the year.

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Topic:
ActiveRain Community
Location:
California Los Angeles County
Groups:
LA Connection
Realtors®
Short Sales in So Cal
The Lounge at Active Rain
Tags:
mike elewski
wells fargo
loan modification
short sale in california loan modification real estate in trouble

Comments 2 New Comment

Rainer
50,384
Ann Bellamy
Hard money lending for investors in NH and MA

They don't have any incentive to do loan mods - banks don't make money that way.

March 23, 2011 03:25 PM
Rainer
11,473
Sarah Street
Cappy Harris Realtors Inc.

The squeaky wheel gets the grease.  My husband says I squeak a little to often.  Thanks for the post!

March 23, 2011 03:28 PM
Rainmaker
157,782

Kris & Kim Darney

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