We have a homeowner named Bob. Bob needs to modify his home loan modification. Bob then files multiple loan modification applications; however, he is routinely denied. Bob nonetheless persists in his efforts and is finally sent an approval letter stating his loan modification has been approved! BUT this approval is contingent upon certain documents being sent within 7 days from the date the letter was sent. The letter was sent on a Friday, May 30th, but Bob doesn’t receive the letter until sometime in June. The letter was not certified or trackable in any sense for Bob to see when the letter was actually delivered to him. Bob goes ahead and sends the signed documents along with a down payment of $2,800.00. Bob continues to make timely payments for the next 6 (six) months. After 6 months of no issues, the mortgage holder, Bank of America, sends Bob a letter stating that because Bob did not accept the approved mortgage loan modification within the required time frame, his loan modification was NOT approved. Note, Bank of America did not send Bob a letter prior to this letter warning him of his error. Now, Bob is stuck and has lost a substantial amount of money which he thought was being made towards his home mortgage. Bob notifies Bank of America and tries to explain the entire situation but the Bank refuses Bob’s insistencies. Only thing left for Bob to do now is to file lawsuit against the Bank. Unfortunately, the Federal District Court in Houston throws out Bob’s case on the basis of Bob’s non-compliance with Bank’s terms of offer.

Even though Bank of America sent an approval letter, Bob was set up for failure because the Bank essentially provided Bob with an impossible timeframe to accept the Bank’s offer. Many homeowners like Bob are left fighting for several years over something extremely trivial. Thousands of dollars later, Bob files the lawsuit with the 5th Circuit Court of Appeals. By the time we get to the court of appeals, all Bob can do is wait to see if his appeal will be successful.

This demonstration barely scratches the surface of the deep-seeded issues in the loan modification world. If you find yourself falling behind on your mortgage payments and truly want to resolve your issue without spending tens of thousands of dollars and several years in court battles, then get immediate help.

The most overheard statement by clients is, “But the bank said they were working on my loan modification and that I wasn’t in foreclosure, but they foreclosed on my house anyway!” My response is always, “Although their representation may be immoral or unethical, they have not done anything illegal because Texas law does not protect verbal representations.” I am not saying that what the banks are doing to the homeowners is right, but in the eyes of the law, it is not ILLEGAL. I wouldn’t be doing my clients any favors by not disclosing how Texas law works with loan modifications.

It’s debatable whether the banks and their upper management are purposely trying to mislead people in their pursuit of a loan modification.  What is not debatable is that banks are not obligated to give a homeowner a loan modification.  Texas courts are routinely throwing these cases out of court with no justice for the homeowner.  We don’t have to like it, we don’t have to agree with it, but to continue to make the same arguments is a swift legal death for the homeowner.  As Einstein once said, “the definition of insanity is doing the same thing over and over and expecting different results”.  Texas adheres STRICTLY (maybe more than any other state) to what is known as the Statute of Frauds for loan modification applications-this means that if you don’t have a FINAL APPROVAL in writing, IT DIDN’T HAPPEN. PERIOD. END OF STORY.  This is a very strict standard the Courts are adhering to so it’s important to understand it and not underestimate it.  If you want help, get the FINAL APPROVAL in writing!

Get yourself a competent and professional attorney, well versed in knowing how to deal with stubborn banks. Don’t put your home and your life in jeopardy, call a Houston mortgage loan modification attorney from Guerra | Days Law Group today!