The borrowers will think they are modifying their current loan when in fact they are starting all over again.
The Foreclosing entity which lacks standing to bring lawsuit, is not authorized to modify anything since they are not the owner of the loan in question.
Since the real parties in interest are no where to be found, they are taking it upon themselves with the help of their lawyers to steal your property.
The borrower is actually getting a new loan which may enjoin borrower from rescinding new transaction.
The foreclosing entity is STILL not using their own funds to modify (new loan) loan. They are getting funds to lend borrowers through Federal bail outs, insurance proceeds and believe it or not Investors. [same process]
Their lawyers are not acting in a lawyer’s capacity but as BROKERS; [middlemen] they are getting paid commission on every new loan they help brokered.
What Does Loan Modification Mean? A modification to an existing loan made by a lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
Why would they need to re-qualify if they claim they would make the borrowers payments and rates to be less?
The borrower took the loan out with lender “A” but an unknown lender “B” is trying to modify it.
When the modification is said and done, the borrower will have lender “B” as the lender. What happened to lender “A”???