Bank Failing On Loan Promise

Tammy and Ray Warner said they are afraid their bank wants them to fail. The couple built a home in 2006 and in September they were approved for the government's Home Affordable modification program.

The Warners said they have sent their payments via registered mail on the first of every month, but they have yet to receive the loan modification agreement from their bank that they expected after completing the three-month trial period.

"Some nights I wake up and think tomorrow some guy is going to knock on my door and say, 'You've got 30 days to get out,' " Ray Warner said.

The program is designed to lower homeowners' payments to an affordable rate. Approved homeowners have their payments cut so they do not exceed 31 percent of their gross monthly income, and if the payments are made on time for three consecutive months, the lender should provide a loan modification agreement.

Three months later, the Warners said their monthly statement has not changed and it does not reflect any of the payments they have made since qualifying for the modification.

"Here's the fourth (payment) and Jan. 1 I'll be paying the fifth with no signed contract, no signed deal, just a promise," Ray Warner said.

VIDEO: Loan Modification Issues

Dozens of people flocked to Orlando last week for a government-sponsored workshop to help struggling homeowners sign up for the loan modification program but Local 6 has received several reports of approved homeowners never hearing back from their banks after the trial period.

"I'm starting to see though they are trying to wiggle out of this program any way they can," attorney Matt Englett said.

Englett said he has seen this trend developing over the last few months and he has already been in court to force banks to follow through on their promise to lower payments.

"Unless the lender can demonstrate that they (the homeowner) don't actually qualify, then the judge has to order them to do the modification. They don't have a choice," Englett said.

Congressman Kendrick Meek said he is investigating to see if these are cases of back-ups at lenders' offices or something else.

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• mortgage
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• matt englett