October 17, 2014
A reader asks, “I have an FHA loan serviced by ******. I am trying to modify my loan. The Bank told me that I was eligible for modification. I repeatedly send all the forms, that they asked me to send. After six months they told me that they could’t modify because my income was low.”
“Then they asked me to submit all the paper work again. While the paper work was in review they told me that they couldn’t modify because they had dropped the mortgage insurance. Even it was under review they turn the house to a trustee for sale, and also they gave me another excuse, that the investor (name deleted) didn’t want to modify my loan. I had to file chapter 13 in order to keep the house from sell and I have to do this monthly.”
We can’t speculate about the nature of the lender’s interactions with the borrower, but the reader question implies a level of frustration with the foreclosure avoidance process that the Federal Housing Administration has anticipated with a page on its official site.
The FHA official site page, “Avoiding Foreclosure” has the following information for borrowers who find themselves in positions like these–it’s not our place to speculate whether the borrower is on the verge of foreclosure, or whether the lender is being uncooperative or not.
We’re just pointing out that there’s an official, FHA-sourced way to address situations where the lender may seem to be less than cooperative in the foreclosure avoidance process:
“Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA’s National Servicing Center toll free at (877) 622-8525,or via email (hsg-lossmit@hud.gov).”
“Whether by phone or email, be prepared to provide the full name(s) of all persons listed on the mortgage loan and the full address of the property including city, state and zip. We may be able to help you more quickly if you can also provide your 13-digit FHA case number from the loan settlement statement.”
You can also contact the FHA directly by calling 1-800-CALL FHA.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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