Loan Modification: WHERE TO COMPLAIN!

I'm really excited about this information. As a reporter, when someone calls you with a complaint--you want to tell them an official agency to register their complaint.

You may wonder--what good does complaining do? I'm just one person. But these government agencies really do keep track, tally, then research complaints. But usually they wait until the complaints reach a certain threshold. And if noone complains, they never reach that threshold.

Over the last...wow, it's been almost three years! I've had a lot of you write and call me about your loan modification and foreclosure. I've told people to call the Attorney General. I've told them to call the Homeownership Resource Center. I've never known if those complaints are registered....until NOW!

There's a government agency called the Office of Comptroller of the Currency. Bizarre name, huh? Well, Abraham Lincoln established it to oversee national banks because he didn't trust the states to regulate them. So the OCC takes complaints and holds nationwide banks accountable.

I spoke with someone from the OCC today...who told me here's what you have to do. Call this number 1-800-613-6743. A live person (hooray!) will answer the phone, take your info, and may ask you to send them your documents. They will then assign you a complaint number and take your complaint directly to the bank's headquarters. You will be able to check in on your complaint by calling the 800 number and they will give you a response in writing as to the outcome of the complaint.

Pretty awesome.

Kevin from the OCC also told me some interesting stuff about why you might be struggling to get a loan modification. Basically, he says, your bank may not own your loan.

The banks act as servicers for many loans...they basically just collect the payment. Someone else owns the loan...maybe a pension fund...or another investor. If the bank owns your loan, it's very easy for them to alter the terms of your loan. BUT if your loan was sold to an investor, the bank has to approach the investor and ask them if they can modify the loan. If the investor group says "No," you may be out of luck.

Well, you learn something every day. I hope this helps you naivigate this process!