In present day it seems the economy is just getting worse and worse and in our search to find the best ways to save money and get ahead, we tend to believe some of the professionals that claim to want to help us; yet in reality they are only helping themselves and draining us of everything.

One of the difficult situations many of us are facing these days is the hardship mortgages that we essentially got roped into.  On a personal note, we had our home built and watched the progress from the ground up.  We even have a scrap book of our proud baby, our new home started from an empty lot.  After a year in our home we got the shock of our first assessed taxes and already started looking into refinancing to lower payments.  A few years down the line we met someone who talked us into an interest only loan which turned out to be really bad news when taxes were due.  Again we looked to better our situation and things just seem to go from bad to worse.  This mortgage broker promised us a “dream loan” yet it turned out to be more of a nightmare; a loan called the pick-a-payment loan and it got to the point that we would have to pay someone to buy our home!  What a mess!

It turned out that we did have one of those loans that our illustrious President has been talking about through the news, with plans to help those who need it through the new Loan Modification Program.  You would think your own bank would try to help you rather than go through a possible foreclosure because of the difficult situations . . . but we tried that route and they were not willing to help us.

The Loan Modification Program is quite a lengthy process.  In order to do it you will need a lawyer.  Sure, we are so deeply in debt yet for them to start to help us we need to come up with lawyer’s fees.  Just like when we find ourselves in a financial bind and income does not get any better, we may be forced to bankrupt.  There you are, up to your neck in debt, looking for help, yet you have to find the funds to get help.  If you had the funds, you wouldn’t need the help!  With the Loan Modification, the only way for us to work it out was to make payments via what should have been our mortgage payment.  The lawyer will not do anything until you can pay them.  It is like a catch 22. 

All the banks responding to the modifications via your lawyers all work things out differently.  When we started the Modification process we were quoted a low A.R.M., topping off rates in 5 years.  It sounded pretty great.  However, our bank would not do the A.R.M.  There always seems to be a catch to everything, doesn’t it?  Yes our payment will be just a little more than the previous “interest only pick-a-payment” option loan but it is fixed and will include the PMI, taxes, everything, and even start build equity in our home again.  However, right now our credit rating is continually dropping.  On top of everything else, we have a 2^nd mortgage and were just informed after all this time that they do not do the modification plans on a 2^nd mortgage.  We haven’t been paying them either pending our modification so why did they wait 3 months to tell us they will not help.  This is all so crazy and too much to handle sometimes as it is so frustrating for the consumers.  We have such little funds and resources, we leave things in the hands of the big wigs who “claim” to want to help us.  I would just bet these deceitful people are not feeling the hardships and financial distress  that we are going through.

If you are going through hardship and difficulties with paying your mortgage, try to get some legal advice as to what steps you should further take.  I believe there are places that give free legal advice.   Maybe contacting a lawyer who deals in mortgages/real estate may be a better route to take.  These loan modification companies are a big business now, they know so many people desperately need help, and I can just bet they don’t have our best interest at heart.  It would be so much nice, easier and quicker if our mortgage company would work with us prior to attorney assistance.  Instead we have to get intervention, and mess up our credit rating in the long run.  I guess it is still no skin off their backs . . . or money out of their wallets.