Loan Modification Mistakes: How to Fight Back When the Bank Makes a Mistake

Having your home foreclosed on by your mortgage lender is an experience no one should have to face. But what happens if the lender foreclosed due to a mistake with a loan modification application? If this has happened to you, you may be the victim of wrongful foreclosure. Here is everything you need to know about loan modification mistakes and how to fight back when the bank makes a mistake and wrongfully foreclosure on your property. In California, navigating a short sale can be a challenging process, but with the right approach, you can maximize your home value even in such circumstances. Follow these strategic steps to ensure a successful short sale that optimizes the value of your property:

1. **Understand the Short Sale Process:**

   Begin by familiarizing yourself with the short sale process in California. Consult with a real estate professional experienced in short sales to guide you through the legalities and requirements specific to the state.

2. **Price Your Home Realistically:**

   Set a competitive yet realistic price for your home. Conduct thorough research on comparable properties in your neighborhood to determine a fair market value that will attract potential buyers.

3. **Enhance Curb Appeal:**

   First impressions matter. Boost your home's curb appeal by maintaining a well-manicured lawn, painting the exterior if needed, and addressing any visible repairs. A well-maintained exterior can significantly impact the perceived value of your home.

4. **Stage Your Home Effectively:**

   Highlight the best features of your home by staging it appropriately. Consider neutral tones, decluttering, and arranging furniture to create a welcoming atmosphere. Professional staging can make a significant difference in the perceived value of your property.

5. **Market Strategically:**

   Leverage both online and traditional marketing channels to promote your property. Showcase your home's strengths through high-quality photos and engaging descriptions. Consider hosting open houses to attract potential buyers.

6. **Work with a Knowledgeable Real Estate Agent:**

   Collaborate with a real estate agent who specializes in short sales in California. Their expertise can prove invaluable in navigating the complexities of the process and negotiating effectively with potential buyers.

7. **Maintain Property Condition:**

   Continue regular maintenance and address any issues promptly. A well-maintained home is more likely to fetch a higher value during a short sale. Keep the property clean and in good condition throughout the sales process.

8. **Negotiate Wisely:**

   Be prepared to negotiate with potential buyers. Work closely with your real estate agent to evaluate offers and make informed decisions. A strategic negotiation can result in a better deal for you, even in the context of a short sale.

9. **Be Transparent About Property Condition:**

   Disclose any known issues with the property upfront. Honesty builds trust and can prevent last-minute surprises that may jeopardize the sale.

10. **Stay Informed About Market Trends:**

    Stay updated on the local real estate market trends in Maryland. Understanding market dynamics can help you position your property effectively and make informed decisions throughout the short sale process.

By following these strategic steps, you can enhance the perceived value of your home and increase the likelihood of a successful short sale in Maryland. Remember to seek professional advice and stay proactive in managing the process to achieve the best possible outcome.

Wrongful Foreclosure

When a home is foreclosed on using improper methods, this is what is known as a wrongful foreclosure. Generally speaking, most wrongful foreclosures are the result of miscommunications between a borrower and a lender.  Often, wrongful foreclosures involve lenders such as banks using unethical, inappropriate, or intimidating tactics in an effort to take away the homeowner’s property.

Some of the most common tactics used by lenders which are deceitful or unethical include:

• Unfairly raising interest rates

• Require unnecessary insurance coverage

• Violating terms of the mortgage

• Falsifying foreclosure documents

• Not following state law

• Improper loan modification

Loan Modifications Mistakes

Loan modification mistakes are one of the leading causes of wrongful foreclosure in Maryland. When homeowners seek their loans modified to meet their current economic realities, occasionally the mortgage servicers who deal with these applications make crucial mistakes, which in turn result in wrongful foreclosures.

Some of the most common loan modification mistakes include:

• Telling homeowners they cannot apply for a loan modification unless they are in default – During the economic crisis of 2008, many lenders erroneously told homeowners they could not modify the terms of their loans. Today, this continues, but in many instances the banks are incorrect.

• Not processing loan modification applications in a timely manner – In many cases, homeowners are left waiting for far too long by loan servicers, meaning their financial issues are not addressed and they may be subject to foreclosure. Under a federal law passed in 2014, loan modification applications must be reviewed, and a determination made within 45 days of the receipt of the application. If additional documentation is required, the servicer has five days to notify the homeowner.

• Calculation errors – Occasionally, mortgage servicers make an incorrect calculation regarding a mortgage loan. If, for example, the servicer wrongly calculates net present value (NPV), a foreclosure could begin. NPV refers to the estimated value of the loan to the investor lending money to the homeowner. If the NPV is determined, the situation would be more advantageous for the investor if the home is foreclosed upon over a loan modification and foreclosure may be imitated.

Because of the ramifications, these common errors can have on homeowners, if you believe your loan modification application was denied through an error, you need to talk to an experienced real estate and foreclosure attorney today.

Contact an Experienced Attorney Today

If you are being foreclosed by your lender, but feel that their actions are unjust, you should contact an experienced attorney to discuss your case right away. Wrongful foreclosures due to loan modification mistakes are no laughing matter and can have massive implications for your future.  Call the Law Offices of Bankruptcy Near Me, LLC for a free consultation today at (301) 550-5408.