I Guess, If You're Going To Lie, Commit To It?

[Miranda Rights]

I am a bankruptcy and foreclosure attorney. A large part of what I do is negotiate with banks to lower the interest rates and monthly payments for my clients. In this story, I am on hold with a bank in the midst of doing this when our office manager (OM) walks in. In keeping with tradition here, SC is Sucky Customer, although I like to think of her more as Stupid [very bad word starting with a C]. Note that this client has a history of lying to us, lying to her husband, and basically saying whatever she thinks will most benefit her.

OM: SC is on the phone. She says she just got off the phone with Generic Bank, and we haven't contacted them regarding her loan modification. She wants the fee she paid for us to negotiate her modification refunded.

Me: That is odd, considering I am currently on the phone with a representative from Generic Bank, and they are looking over her paperwork to see what kind of mod they can offer her.

OM: She keeps screaming that you're scamming her.

[I pick up SC's call as a conference call with the bank.]

SC: I just talked to Peter at extension 104 and he told me you HAVEN'T EVEN TALKED TO THEM! I WANT MY MONEY BACK!

Me: I assure you, I sent the paperwork for your modification on the same day that your husband paid our fee to renegotiate your loan. Peter must have been mistaken.

SC: I paid that SIX MONTHS AGO!

Me: No, you did not. If you have proof that you did, please feel free to bring it in, and I'll certainly apologize, but our paperwork here does not reflect your version of events.

SC: Well, I meant to! And it's been paid now, and you haven't done anything!

[Generic Bank representative comes back on the line exactly then. Talk about beautiful timing.]

GB: It looks like we can offer your clients a 4.75% rate, with all the arrears at the end of the mortgage term. Their first payment of $674 will be due April 15th, and when the first payment is made, we will suspend the foreclosure action.

Me: Just to confirm, this is for Mr. and Mrs. SC?

GB: Uhh, yes. Are those terms acceptable?

SC: YES! SAY YES!

I said yes. SC apologized extensively to me afterwards, and I know it was because she realized how thoroughly I could have screwed her by telling the bank that I was no longer negotiating on her behalf. Usually it doesn't line up so perfectly, but how sweet when it does! Although, part of me wanted to refund her fee and tell her she was on her own.

[bainsidhe]

This SC really makes me angry. I've had family members file bankruptcy and *almost* go through foreclosure. It's a terrible situation financially and emotionally, regardless of the hows and whys someone is in that situation. Emotions run high, so extreme kudos to you being there for your clients. But I become upset when I hear how someone abuses everyone because they think it helps them. She's the same as the SCs who lie to gain discounts at the store, except you're already on her side and she's still pulling that crap. I've had family with a not-so-great attorney (didn't file papers, never returned calls, etc), so I realize a decent one is worth every penny.

[BaristaTrav]

Not your fault at all, but I briefly worked for one of said banks, and I can't tell you how many "outfits" were scamming their clients, for a service the clients could have done themselves directly with the bank for free.

So, this woman probably got impatient and thought you all hadn't sent her paperwork, which in some cases is very real and does happen. It's also possible she talked to someone in the wrong department (don't ask someone who works in short sales to access info on foreclosure, or someone in mods to access escrow, etc. etc) and may have been told "no we never received any paperwork," also a common occurrence, which leads to lots of SC flip-outs.

[Miranda Rights]

Most clients, I will give the benefit of the doubt. No one knows better than I do how banks can lose paperwork and give false information! This lady? No way. She calls no fewer than twice a week to scream that we are stealing her money. She tells lies left and right, and is verbally abusive. This is her FOURTH loan modification in two years, and each time, she insists that she has been making her payments, and the bank screwed up. Now, this DOES happen. But she can never provide any kind of proof of payments made, and she's been kicked out of loan mods three times for failure to comply with payment terms.

The loan modifications we negotiate CAN, in fact, be done by the clients themselves directly with the bank, and it is firm policy to inform the clients of this. We will even provide them with the paperwork to fill out on their own, and the numbers to fax it to, free of charge. However, many clients will gladly pay for someone else to do the paperwork and the follow-up. It's like getting a manicure; sure, I can paint my own nails, but it's often worth it to just sit and relax and pay someone else to do it, and it looks better at the end anyway. Most banks play more nicely when they negotiate with legal counsel, and I know a few tricks to negotiate lower rates. This client had been provided with blank forms and even given instruction on how to fill them out on her own. Yet, she wanted me to do it for her. Sure, I'm happy to. For free? Hell, no.

[BaristaTrav]

And sadly, it's people like her that are one of the reasons that banks are still dragging their feet on the mod thing, and still going through with foreclosures left and right.