A Fork in the road

Wednesday, December 4, 2019

The Full Foreclosure Experience

Barbara Mallon, Mallon & Johnson

Still suffering from the aftereffects of a less than favorable 2007 home loan, Benesse and Kenneth faced foreclosure. After being wrongfully denied a loan modification, the husband and wife were referred to CVLS by a foreclosure judge. Through CVLS’ partnership with Spanish Coalition for Housing, they submitted a new modification application, and the bank offered the couple a trial period plan (TPP) to move towards modification of the loan.

Awesome! Wait a second; not so fast. Within days of making the offer and before Benesse and Kenneth could make their first payment, the bank issued a new TPP. Keep in mind, this was towards the end of December…

Although the bank received the couple’s first TPP payment by the due date, it was received in between holidays and was not processed by the bank until later in January when the funds were no longer available in their account… What, pray tell, did the bank do next? Of course, it considered the couple in default and refused to accept any payments to remedy the situation. CVLS volunteer, Barbara Mallon, pulled up her sleeves and got ready to battle it out. Despite Barbara addressing the bank’s absurd decision with both bank and counsel, the bank would not budge. To complicate matters, the file was transferred from one bank to another.

Finally, through Barbara’s perseverance, months of struggle, shifting strategies, and another application, Benessee and Kenneth received a new TPP offer which they completed. Their loan was permanently modified, the foreclosure was dismissed, and their home was saved. Benesse and Kenneth were thrilled to share their story and gratitude for Barbara’s valiant efforts.