After the Washington Post reported on their plight, a family with a gravely ill child that got foreclosed on a day after they were told their loan modification was approved, the bank investigated and found that they had screwed things up.
“Fannie is frustrated when we learn of individual cases where servicers do not properly process modification applications, and families . . . pay the price,” said a spokesperson for Fannie Mae, who owns the mortgage. “In this instance, the situation was not handled properly.”
While the family may not have qualified for a modification under the federal Making Home Affordable Program due to their high income, Fannie said their protocols for offering other modification options before foreclosure and short sale were not followed in this case.
Servicer Chase offered to reduce the family’s monthly payments and extend the term to 40 years, with a $100,000 sum due at the end.
The family said they will be having a lawyer check thoroughly check out the deal before agreeing to it.
Sometimes after you’ve exhausted other options, it’s worth turning to the media to get a company to move.
Bank reverses foreclosure for Va. family with very ill child [Washington Post] (Thanks to Scott!)