Residents Tell of Banks' Disfunctional Loan Modification Processes

Ammyanna Williams lives in Dale City, Virginia. Wells Fargo was her servicer. She lost her home in Feb. 2010 because she had spent six months fighting for a modification two years before, only to have her payments go up. When she received her foreclosure letter (after being unable to get paperwork sent to apply for another modification), she felt so frustrated by the process that she let her home be foreclosed on. She does not want other families to have to go through what she has experienced.

Edgar and Ana Lemus also live in Dale City, Va. Their servicer is Chase (a subsidiary of JP Morgan Chase). They have never missed a payment and received a permanent mortgage modification in October 2009. A year later, they received a letter claiming that Chase had never received a letter claiming that Chase had never received their final paperwork and they were going to be put in foreclosure. The bank also claimed the family was 27,000 in arrears (even though they had paid their payments on tiem and in line with the modification every month). They are now being told they must apply for aonther modification to avoid foreclosure.

Editor's note: information received from VOICE for justice (Virginians Organized for Interfaith Community Engagement).