Lender Changes Mind About Backing Out Of Loan Modification Promise After Homeowner Facing Foreclosure Tells Media

In Surprise, Arizona, KPHO-TV Channel 5 reports:

• A Valley mom is thanking CBS 5 News for saving her home after her bank almost backed out of its loan modification agreement. Heather Caldwell's family was in big trouble, with their Surprise home in foreclosure. Caldwell decided to go to the Wells Fargo Home Preservation Workshop [...] hoping to modify her loan and save the family's home. "Within an hour, we were told everything was fine and we had our new payments and our new interest rate," said Caldwell. "Everything was going to be great."

• But a week later, Caldwell got some unexpected news when she called a Wells Fargo representative to check on their loan modification. "She was pretty blunt," said Caldwell. "She told me there was nothing she can do to help. 'You've been denied. Your income doesn't meet the qualifications. That's it. You're done.'"

• Caldwell didn't know what to do next, so she called CBS 5 News for help. Immediately, CBS 5 News placed a call to Wells Fargo's corporate office. "Within an hour, we got a call saying there had been a miscommunication and that there had been mistakes made," Caldwell said. "She said we are going to get it taken care of and get it resolved. Without CBS 5 taking the time to call them and get their attention, they never would have done anything." Wells Fargo offered the Caldwells an even better interest rate than what they were promised at the workshop -- instead of saving $325 a month, they were now looking to save close to $450.(1)

For the story, see CBS 5 Steps In To Save Family's Home (Family Gets Loan Modification They Were Promised).

(1) It seems to me that once the local media outlets get their hands on one of these loan modification screw-up stories and decide to run with it, the loan servicers fold like a cheap suit and grant quick relief to the aggrieved homeowner. The media outlets should consider setting up their own loan modification departments, given the loan servicers' apparent fear of negative publicity they get when these stories come to light.