You have just sent bank statements, pay stubs, a completed loan modification packet, and several other documents to your loan servicer, Entitlement Bankcorp, in the hope of getting a loan modification. You have sent everything requested and have been told that the loan servicer will get back to you in a few weeks with an answer. Is this a familiar scenario for you?

Are you excited? Relieved? Hopeful? Or are you frustrated and angry because you have already submitted these same documents three other times over the course of a year and a half, only to be told that documents you know you sent were missing from your application package, or that your paperwork had expired because Entitlement Bankcorp sat on it for months before getting back to you, or that you did not qualify, so please reapply.

It would be hilariously funny, the ineptitude and incompetence of the bank with loan mods, if it weren’t so stressful and worrisome to the majority of homeowners who have applied. And you are not alone. This same scenario is played out, over and over, across the country from bank to bank.

The key piece of information that most homeowners are missing is that the banks make far more money on foreclosures than they do on loan modifications. And, to make the deal even sweeter for them, they offer “ trial modifications” in which the lucky homeowner gets to pay some “trial” amount to the bank each month for three months at which time the bank may let the homeowners know that a) they do not qualify for a permanent loan modification, b) all their paperwork has been lost and must be resubmitted–start again from square one, c) they have been granted a permanent loan modification but the payments are higher than the original payments, d) foreclosure proceedings have started, or in rare cases e) an actual sustainable loan modification has been granted.

In every scenario but e) the bank comes out far ahead financially.

Does this mean that a homeowner should not apply for a loan modification? No, because sometimes a modification is actually obtained that enables the homeowner to avoid foreclosure and stay in his home. However, any homeowner who is hoping for a good loan mod, whether he is attempting to obtain it on his own, or with the help of an agency or law firm, needs to be persistent and aggressive.

In some cases we have been able to litigate successfully against the bank and obtain a good loan modification for our client. In other cases, we have obtained a good loan modification without having to file a lawsuit. It really depends on the facts of the case, the income and expenses of the homeowner, the policies of the mortgage servicer, and how much trouble the servicer has recently gotten into.

But most of all it comes down to persistence.