Posted: Mar 4, 2011 5:54 PM by Ariel Wesler
Updated: Mar 4, 2011 8:51 PM
Thousands of people across the country have fought to get loan modifications from their banks. An Orcutt man says he's done all he could but might still lose his home.
Jeff Persson says he has been working on a loan modification with the bank for more than a year. The bank was supposed to auction off his home today, but has given him an extension. He's now deciding whether to sue the bank for what he calls a scam, forcing him into foreclosure.
Jeff Persson of Orcutt is fighting to keep his home against a powerful opponent, Wells Fargo Bank, one of the nation's leading mortgage lenders.
"Everything was either lost, or they didn't get all the information, or there's something missing in the paperwork. Any details missing in the paper work and it gets delayed," Persson said.
He worked in construction before being laid off nearly two years ago. He's been working on his loan modification with Wells Fargo for over a year. He says behind their pleasant facade, the company continues to force him and others into foreclosure, which he believes is a more profitable option for them than loan modification.
"If they would have qualified me for this a long time ago, I wouldn't be in this position," Persson said.
The bank offered him a trial period for the modification. He says he made the payments and was approved on one condition. He had to come up with another $5,000 dollars in 10 days.
"You already know what my finances are. You know I can't afford that. That's not making my home affordable. That's making me go bankrupt," Persson said.
He says when he couldn't come up with the cash, the bank put his home back into foreclosure. He's now re-applying.
"My whole livelihood rests on these faxes that I'm sending out and if the fax doesn't go through, well, where's my daughter going to go to school and where are we going to live?" Persson said. This isn't about paperwork. This is about people."
Wells Fargo has already faced multiple class action lawsuits. We called Mr. Persson to find out if the bank contacted him. He says thanks to our story, he now has the direct line to one of Wells Fargo's executives.
Experts have some tips on what you should do if you are applying for a loan modification.
Make sure to use a HUD-approved representative. HUD stands for the U.S. Department of Housing and Urban Development. It's a non-profit and its services are free.
Send documents requested immediately with your loan number on each page.
If your loan modification is denied, demand to know why and get a denial letter from the lender. You're entitled by law.
If there is a problem, call your representative in Congress.
Here are some links if you're struggling with your loan modification or want more information.
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