Problems With Loan Modifications and Missing Paperwork

Q: I know that you are used to people having problems with loan modifications, where the banks lose stuff. We have that problem with two different banks on the house that my sister and I inherited, although we’re not having trouble making the payments.

The house has been put in our names and we notified both the primary and home equity line of credit (HELOC) lender. Both of the banks sent paperwork to fill out, which we completed and sent back.

Then, the primary lender stopped accepting electronic payments, and their collections department started calling. My sister, who is the executor of the estate, keeps getting bounced between the collections department and customer service. Both departments say they do not have the paperwork.

We tried to go higher up, and find a manager we can talk to, but that hasn’t worked. The last time my sister called to ask about the account, she was chewed out for “not having the correct information” and hung up on. The HELOC lender is at least accepting payments, so she is concentrating on the primary lender first.

Any ideas on how to get this resolved? My sister is keeping notes of every phone call, though sometimes she cannot get the name of the person she talked with.

A: First, the representative at the bank should not have been rude, nor should the representative have hung up on your sister. It’s appalling how badly customers have been treated by their lenders during the past five years. It’s as if every customer service rule has been thrown out the window. Heck, all you’re trying to do is make a payment.

Let’s start with the inheritance issue. You and your sister inherited a home that had two mortgages on it. Both of the lenders are big megabanks that are regulated by the Office of the Comptroller of the Currency (OCC).

These days it’s bad enough trying to deal with lenders on any issue, but your first issue is to try to have these lenders recognize you as the new owners of the home and to have statements and other documents sent to you. The first question you need to answer is whether you were successful in having either bank recognize you as the new owners of the home.

When you inherit a property, most lenders agree to allow you to take over the loan or loans associated with that property. This is especially true if you are inheriting your parents’ property.

[ad#in_content_1500]If you can’t get a customer service (also known as customer care) representative to answer these questions for you, then you should call the national headquarters of the bank and talk to the senior vice president in charge of operations.

You can also file a complaint with the OCC’s consumer help website, HelpWithMyBank.gov. Your state’s department of banking and finance may also have an ombudsman who can help connect you to the right department at both banks.

Finally, you can always file a lawsuit in small claims court. Legal action always gets attention.

Good luck. Let us know what happens.


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