We are starting to see the banks/lenders rush to pay back the TARP loans as the market is finding its legs so the gig might be up. Like Stan the Man wrote in his reply in the MRG blog, "We all remember the days when the lenders told you to back off and would soon be kicking in your door," sadly there is some truth to that. The heat/spotlight is off the banks as it is old news so we are starting to see the banks crawl back into the hole in regards to the way they conduct business.
I was providing loan modifications way before most and have many campfire stories of how difficult it was to get them to even take your phone call. I can't tell you how many times the lender would state, "We never received your information," this was when I had in my hand the signature page receipt of my certified mail to them. It has been somewhat clear sailing in regards to most banks/lenders but it is true I am seeing a change. As the economy gets legs the party seems to be ending and banks who have returned TARP funds will fall back into the "pack your things and get out" mode.
The very best advice I can provide someone who is thinking, wondering about a loan modification: it is time to get started. To put an old rumor to rest, it is not true that one has to have missed payments to be considered for a loan modification. Any hardship that can be documented such as a loss job, cut back in income. Medical issue, etc. might qualify you for a loan modification. If you have been on the fence or simply trying to hold on I would at the least clearly know your options for a loan modification before the loan modification option is withdrawn.
Richard_Van_Dyke
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