When the Homeowner’s Bill of Rights “HBOR” as created it provided borrowers with a way to fight back when their bank/loan servicers were not reviewing their loan modifications, were denying based on “missed documents” or income that was improperly calculated by the banks. However, it also created a lot of loop holes for the bank/loan servicers. The one I hear defense counsel arguing constantly is that the package wasn’t “complete.” In order to have the protections of HBOR your package must be complete. It is imperative that you send the bank a set of documents that contains every document requested (look on their web page for the list of requested documents). If the bank asks for additional documents submit them as soon as possible.
Banks will almost never tell you that the modification application is “complete” however if you send all documents requested, or from the website, and you keep a copy of what sent, you are likely able to defend your lawsuit. If you call the bank, or they call you, keep a detailed log of the conversation.
Remember, you cannot apply for a loan modification more than once and have HBOR protections unless you have had a “substantial change” in your financial circumstances. Although there is no definition of substantial change, if you got a raise, or a roommate, this could change your finances enough to allow you to re-apply and have the protection.
Another little tip is if you are grated a temporary payment plan to become a loan modification you must send the payments on time, and to the correct address.
I hope this helps