We own a non owner occup 6 unit rental for last 5 yrs, put 25% down at closing had excellent credit scores .Due to bad loan went into negative amortization last year, we hired a Truth in lending firm to audit our loan, last 6 months they have been requesting papers from Lender who were not able to provide HUD, TILA and other Compliance docs that shold have been during closing 5 yrs ago.Compiled a forensic audit and found several infractions including that our debt to income ratio was not sufficient to be eligible for the loan. A Qualified written request sent recently to Lender . 3rd par will negotiate with lender for a possibility of Princ reduction and rate. Curr we are in Foreclosure process. Lost control due to Mgmt Co. assigned by court to collect rent. WE WANT TO MODIFY
Real Estate Attorney
There are organizations that will modify for free. Contact us for a referral.
First of all, if you are in active foreclosure, you have the right to discovery of documents - even if you requested them pursuant to a QWR and even if you are in a receivership. To the extent that they cannot produce them, it may create a defense to the foreclosure. If they cannot foreclose, they may be much more willing to modify. It sounds like you are being bulled by the Bank - just because they CAN. Look at your legal defenses to the foreclosure and see about protecting your rights.
Secondly, if the bank is not responding to your QWR, you might consider writing a complaint to Office of the Comptroller of the Currency or Office of Thrifts and Savings - depending on what type of bank it is. The complaint might not do anything other than create a slap on the wrists, but enough of them get the banks scrutinized by OCC or OTS, so it's worth doing.
This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.