Mortgage Lenders Haven’t Gotten What’s Due Them: Ann Woolner

A distressed U.S. homeowner with a temporarily modified mortgage made every payment on time for 13 months. That’s 10 months past the standard three-month trial period, but the servicer was predicting a permanent modification, so the homeowner kept paying.

Instead, a negotiator who never spoke to the borrower rejected the permanent adjustment so the sheriff’s department put the house up for sale, no explanation given.