Banks, Those Dirty SOB’s
Another round of swindling the government and consumer’s money. Another form of the modern-day carpetbaggers. This is the second case I have seen in just a few months and I expect to see more coming out soon.
What I am talking about is this. In the past fall we were hit in Florida and Texas with devastating storms. This has left people not only displaced from their homes but often out of work for a period of time too.
The government including the IRS announced programs of relief and extensions of time. Some programs included a type of modification or help with current mortgage loans. These programs may include putting the current monthly mortgage loan payments off until the end of the loan.
Some people may have only needed one or two months of delay. What the banks didn’t tell people up front was how the program really worked. These people may have actually been better off being 30 or 60 days late rather then what these carpetbaggers are pulling on these disaster area victims.
What these banks have told the people was, “Yes, we can do a loan modification and just put those payments back on the end of your loan.” Then went on to say “this will not have a negative effect on you as we will keep reporting you as current on your loan with the credit bureaus”.
Sounds great right? Not so fast, these banks that I have witnessed on VA loans are filing that the Veteran is in default and then putting in a claim to the VA on the Veterans Eligibility for tens of thousands of dollars.
This has a huge impact the on the Veteran’s benefits as the Veteran will have to pay all this back BEFORE they can purchase another home and may cause issues later on down the road with other programs.
If you feel this has happened to you call the Consumer Financial Protection Bureau, (CFPB) and your senators and congressman now and stop this practice.
Before you enter in to a loan modification, get everything in writing including its impacts. Understand what you are going to go through. Get all your facts. Ask questions, call us, ask your attorney or call the CFPB. Because we want to see you with your next purchase at a happy closing table.