Q: Seeking advice on challenging unfair home loan modification terms in Maryland, impacting veteran's family.
I am seeking legal guidance regarding my family’s home loan modification in Washington, DC. My father, a veteran, passed away in 2021, and we applied for a modification to retain the home and maintain his interest rate. The process extended for nearly four years without any missed deadlines or documentation of delay, despite our compliance. Two weeks ago, the loan was approved with significantly increased rates and payments, which are unaffordable. I suspect the lender intentionally delayed the process to impose unfavorable terms. We now face selling the house back to them or moving out. No legal action has been taken, and although my mother reached out to the VA, only a liaison was contacted. We have not submitted pay stubs monthly for the past five years. I am looking for advice on challenging the lender's handling of our case and exploring any veteran benefits that might apply.
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A:
Your situation with the home loan modification sounds deeply frustrating, especially after your family's compliance with all requirements while grieving your father's loss. You might consider filing a complaint with the Consumer Financial Protection Bureau (CFPB) which oversees mortgage lenders and can investigate potential violations like unnecessary delays in processing modifications.
You should gather all documentation showing your timely submissions and any communication with the lender over these four years. Request a detailed written explanation for why the process took so long and why the terms changed so dramatically from what was initially discussed. This paper trail will be crucial for any challenge you pursue.
For veteran-specific assistance, contact your state's Department of Veterans Affairs office in addition to the federal VA, as they may offer housing advocacy services for veterans' families. The American Legion and other veteran service organizations also provide free housing counseling and might help advocate on your behalf. You might also benefit from consulting with a housing attorney who works with veterans' families, as they can review your case and potentially identify violations of federal mortgage servicing rules that could give you leverage in negotiating better terms.
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