The real problem is that the servicing company is in control. They have no incentive to negotiate because they make money by driving the foreclosure process forward. They don’t care whether the loan is paid or not. In fact, they do better if it has trouble.
For some time they have been deliberately holding payments received on time without crediting them to the account. They say they are “in suspense”. Then they charge late fees, and have their attorney start a new default process just to drive up the bills. We wind up paying the original payment, the late fees, their attorney fees, and our attorney fees. You get a little behind and then the game is rigged to make sure that it is extremely difficult to get straight again.
I think they are probably doing this to a lot of people.
