The Last Word in Loan Modification: Why You Must Pay Your Mortgage No Matter What

by Isaac Benmergui, Esq on March 4, 2014

We understand that the real estate market can get a bit tough, and loan modifications come with the territory. Understand, though, that unless there’s some specific law broken under – say, for example, the Home Affordable Modification Program – provisions or statutes, it doesn’t matter what your argument

Your house will be foreclosed if you don’t pay your mortgage. Plain and simple. A bank may deny your application for a loan modification under several reasons, if necessary. In this case, between the MacKenzies and Flagstar Bank, FSB, the plaintiffs in the case (property owners) alleged a total eleven counts of state law violations regarding the Home Affordable Modification Program.

The district court swiftly, though, granted the decision in favor of Flagstar, appropriately filing motion for dismissal. The MacKenzies, though, didn’t quit, taking it to the Circuit Court of Appeals for more deliberation. They wanted to reverse that foreclosure. It seemed rather ludicrous to think that because they were denied their loan modification, they have a right to argue this for the purpose of saving their home. The law is the law, though. Needless to say, the Court of Appeals affirmed the district court’s decision, letting dismissal stand. Ultimately, the responsibility rests on you to pay your mortgage; and if the bank simply can’t provide any modification, as long as requirements are met under law, there’s really nothing you can do.

News wasn’t specific on the reason why the district court made the decision they did and how the Court of Appeals affirmed that decision. Perhaps the MacKenzies were looking for some kind of loophole through the Home Affordable Modification Program. Whatever the case, loopholes won’t work. Follow the law and make the payments.

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