Trial Modification and Refinance Can Lead to Foreclosure

Trial Loan ModificationHomeowners that never missed a payment are facing foreclosure according to recent news stories published in MPR News and MSNBC.

According to MPR News, John Chun refinanced his house in 2006 at an adjustable rate, without realizing that the rate was adjustable. This resulted in an increase in mortgage payments to the point where the Chuns couldn’t keep up with their payments and are now in court fighting a foreclosure.

The MSNBC news about the Cascos is similar, the only difference being they took a trial modification program with their lender recently, and the bank foreclosed on them after deciding the smaller payments were not enough. The couple claims they never missed a payment.

In some of our previous blogs we mentioned that the real estate sector is showing signs of recovery and the number of foreclosures this year is significantly lower than last year. Stories such as that of John Chun, and William and Esperanza Casco, indicate that there are many struggling homeowners out there still fighting foreclosure.

The major point of concern in such stories is that the homeowners were not behind on their payments. The foreclosures were caused by what can arguably be stated as the banks not living up to their promises. Another reason we can point out is that the homeowners were not clear about the terms and conditions of the modification or refinance agreements they were signing.

This is where legal representation comes in. We have previously discussed the importance of not signing any documents that you haven’t read and that have not been explained to you. However, if you have signed such a document and are facing foreclosure, all is not lost. Several homeowners have successfully taken lenders to court and have won the battle to save their home. You can do the same.

The foreclosure defense attorneys and loan modification attorneys at Amerihope Alliance legal Services have already helped many homeowners keep their homes, and we can do the same for you. If a really attractive loan modification or refinance opportunity presents itself, do not act without understanding each and every detail in the fine print.

If you need legal advice, we are offering free consultations. Feel free to contact us. We are looking forward to your feedback.


  1. Lisa Hoffman

    I am in Colorado, can you help. Have been battling with BOA for 3 years, making trial payments for one full year, never missed a regular mortgage payment nor a trial payment and am being foreclosed on. Can you help Colorado residents or do you have an office in Colorado?

  2. Amerihope Alliance

    Hi Lisa, I am sorry but we do not represent homeowners in Colorado at this time, only Florida, New York, New Jersey and Pennsylvania. I recommend going to lawyers.com and finding a local attorney. Make sure the attorney you hire is licensed to practice law in Colorado. We wish you the best — and from the details you provided, it appears an attorney would have little trouble defending you — definitely speak with someone soon.

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