Since a foreclosure hadn’t started, it seemed the best thing to do was to try and help her get a loan modification.  Maybe the lender would see the errors of the broker who put the refinance together and be cooperative.  

So, I filed out, with the client’s help stacks of papers and submitted them to the lender.  They called about 2 weeks later to ask for some additional information and we immediately provided that.  I heard nothing for two weeks.

Then my client received a notice of foreclosure.  That gives her, under California law, 90 days to resolve the delinquency or the house gets put on the market for sale.  So I called the number the lender had given me when they asked for more papers.  Wrong number.  I called the lender and asked for their modification department.  A couple of hours of phone trees later, I ended up with a clerk who couldn’t locate the file, couldn’t find any paperwork, but who offered to send me another set of papers.

I received the second set of papers and sent them back immediately.  I heard nothing.  Meanwhile the time was running on the foreclosure.  I called several more times and was told that they were working on a modification offer, would get back to me, and to “sit tight” and wait.

About two months into the 90 day pre-sale waiting period, my client received a band new solicitation from the lender to apply for a modification, and yes, it contained the same set of papers!

We filled those out and resubmitted.  I’ve heard nothing.   

It’s now quickly approaching the 90 day mark, so I will be filing a bankruptcy to stop the foreclosure in the next couple of days.  No doubt I’ll hear from the lender wondering why my client simply didn’t do a modification!

We need this new bill: “Helping Families Save Their Homes in Bankruptcy Act of 2009” so that judges can make these decisions and the thousands of homeowners like my client  won’t lose their homes!