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The folks at ProPublica recently looked into the all-too-common problem of homeowners who thought they had successfully run through the loan modification gauntlet only to later find out that their bank had no record of the reduction and their house was suddenly in foreclosure. There's the story of one Oregon homeowner with a Chase mortgage who had agreed to a modification last July. She says that, months later, she got a letter from the bank saying her modification had been rejected, followed one month later by a foreclosure notice.
It got worse:
After months of trying to figure out what was happening, she was offered a new modification, the terms of which were identical to the one she'd signed -- except for the addition of over $8,000 to the balance of her loan. Understandably, she turned it down. But after having made every payment on her modification for nearly a year, the foreclosure notices continue to arrive.
