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A Familiar Story: Homeowners Pay For Mistakes Banks Made

Dont Pay For Mistakes Made By Banks

Homeowners who have lost their homes in a foreclosure are now able to have their case reviewed by a third party to ensure the banks followed the proper process in foreclosing their home.

This process is a small step in making it right for homeowners but, as NPR is reporting, while banks may now be owning up to their wrongs, homeowners  are facing even more problems.

Wisconsin residents, Christina King and her family, were prime candidates for the Home Affordable Modification Program. A loan modification could have allowed the Kings to lower that mortgage interest down to around 4 percent, which would have dramatically reduced her required monthly payment and made the loan affordable. But when the family tried to get a loan modification Bank of America repeatedly lost documents, and then claimed she didn’t make a payment that she did make. Bank of America denied the modification and foreclosed on their home.

The Kings received a surprising letter from Bank of America this September stating that they made a mistake in processing their application for a loan modification which they were now offering – which would be great news except their house has been vacant for a year and is a wreck.

While the bank has owned up to their mistakes and has promised to assist the Kings in getting their home back in order, this is just the tip of the iceberg as the review program gets under way – there are bound to be tens or even hundreds of thousands of people who feel they’ve been harmed by similar mistakes.

Each case will require extensive legwork to dig into and sort out, and that will be a major undertaking. If you find yourself in a similar situation, we suggest finding a reputable attorney to stand by your side and ensure you receive the reparations you deserve.

Check out the full story at NPR

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