Why aren’t more people getting their loans modified? by Chris Diaz

I work closely with professionals who are honest and ethical and one of those professionals is Chris Diaz, President of Charis Financial.  He helps many of my clients with Loan Modifications and Short Sale Negotiations.  I received this email from him last week and got his permission to post it here.  I think this is helpful information.  His contact information is at the bottom of the post if you’d like to contact him.


“Hi Everyone,

Lots of homeowners out there are coming to us tired and extremely angry about their experience with their banks as it pertains to getting a loan mod.  While an appropriate explanation doesn’t exist, we have plausible ones which can at least guide us down the road we are toiling.  Whether we like this road or not, it seems that our commitment to providing truth to our clients leaves us as the only ones doing so, making our understanding of what’s happening all the more vital. 

Take a look at this article about reporting on the delinquency of HAMP modified loans.  Keep in mind that most HAMP mods start at 2%.  Then take a look at the adjustments made to those numbers and the disparity between what the government is reporting and what independent analysts are reporting. 


The actions of the banks lean heavily towards proving the independent analysts findings much more than they do the government’s.  Put another way, if you knew that the money you lent out was 55-75% likely to default again after reducing your expected returns by 200%, would you be more inclined to keep doing that or just wipe the debts off your books at a loss right now?  I am going to venture to guess that all of us would try to get those off our books asap and that is why the banks are doing what they are. 

The unpopularity of making such a statement after all that has been given to them is understandable, as is the reluctance of the government in admitting their assistance was a huge bust to everyone but the banks.  Like I said, there’s not an acceptable answer but there are plausible ones.

Thank You,

Chris Diaz, President
Charis Financial, Inc.
Ph: (800)826-0871 ext. 100
Fax: (949)271-4134


DRE License #01247100″

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