It has been ten months since the Obama government has been putting pressure on the lenders to be proactive in preventing foreclosures. The unfortunate borrowers are doing what they are expected to do but despite their applications are being refused and some are seeing their houses sold off even without proper notification.

As per the stipulations of the HAMP programme they have successfully gone through the trial period, duly made mortgage payments timely only to hear later on that they would not get permanent modification.

It as yet not clear how many have been affected. Till date over 759,000 trial modifications have taken off but only 31,382 have acquired permanent status. It calculates to 4% – far far below the 75% target of Obama.

In the fine print laid down in the form it is stated that borrowers have to complete a trail run of 3 months. Three consecutive payments have to be paid and papers submitted substantiating their claims. Meanwhile the lender is given this time to decide upon providing permanent modification. During this time the important rights of notification are waived. By it the lenders acquire the rights to go ahead without any notification being given to the homeowners and sell off the house at auctions. It is a dangerous clause written in fine print which many may easily miss out.

Evangeline Flores was one of the victims of the clause. She completed successfully the three month trial period in her battle to save her modest sized house in Fontana, California. The third and last payment for the trial period, as agreed upon, was made for $1,134.60 on 1st November. According to her attorney George Bosch of Edward Lopez and Rick Gaxiola law firm, her servicer, Central Mortgage Co. told her that her adjustable rate would be replaced with a fixed rate one. The monthly rate of the ARM had increased to $2,000 per month. Bosch said, “The information they had given us is that she had qualified and that she would be getting her notice of modification in the first week of December.” The legal firm is handling the case of Flores free of cost.
In her late fifties Flores is child-care worker. She informed her December payment to the mortgage firm on 30th November. But one day later there were loud bold knocks on her door. Two strangers had come with an eviction notification. They were aggressive in their demand stating that they were the owners. Flores suffering from high blood pressure began to feel unwell.