Posted on Tue, May. 04, 2010
last updated: May 04, 2010 01:16:02 PM
Carey and Tracie Kinghorn were content with their adjustable-rate mortgage, but they were pleased when the Texas-based servicer that had bought their loan offered them a modification to lower their monthly payment by about $500. The change cost them $11,000 in fees and charges, but the Kinghorns signed a contract in April 2009.
The company cashed the check but never recorded the modification, the Kinghorns said. In February, they said, they learned that the home would be sold at a foreclosure auction because they hadn't been paying the original full monthly payment. They tried to stop the sale, but it went forward in March.
The Kinghorns blame the mortgage servicer for taking their money and selling their home. The company says it handled the Kinghorns' mortgage properly and tried to reach the couple by phone and mail in the past year to no avail. The couple contends they were not contacted.
An Idaho Statesman story April 7 about a family whose owners said their home was sold after a botched loan modification prompted dozens of responses from Treasure Valley residents complaining about loan servicers, lost paperwork, miscommunication and prolonged modification trial periods. Many said their loan representatives told them the only way the family could get help was to stop paying their mortgage for several months. Several said they had lost their homes through foreclosures that shouldn't have happened.
Read the complete story at idahostatesman.com
Read more: http://www.idahostatesman.com/2010/05/04/1177472/complaints-about-mortgage-relief.html#ixzz0mywK9lmg