The most frustrating theory seen in most loan modification applications is that it makes the most sense for the bank to modify the loan. In Chela’s case, she owes $255,000.00 on her mortgage. Comparable sales data in Dakota County shows that her property MIGHT go for $180,000.00 as a foreclosed home. (And that is being generous). It “makes sense” for the bank to work with her, but no one knows if that common sense will win out in the end.

We resume our walk in Chela’s shoes while trying to achieve a loan modification and retain her family home. To catch up, click here to see Chela’s Story, Part 1.

We left off last time in March when Chela was required to put together a whole new loan modification application. Chela updated all the documentation required.

Let me introduce you to Chela. Chela is a divorced mother of 3 living in Dakota County, MN. She owns the home where she grew up, located on a small orchard. To simplify the events that led to the necessity of a loan modification, I will put them in a time line below.