Wrong. If your bank has sued you in foreclosure while referring you to a “Personal Loan Consultant,” this will not stop them from obtaining a judgment on the property. A personal loan consultant is just another term for the person reviewing your loan file to see if it qualifies for a mortgage modification. The consultant does not lobby with the bank on your behalf. The consultant will likely not be able to answer any and all questions you have concerning your situation. In some situations, your consultant may be difficult to reach. The consultant will not be able to take into account any special circumstances that have resulted in your difficulty to pay the mortgage. In most cases, a personal loan consultant will simply be the individual collecting (and re-collecting) documents for your loan file. Calling loss mitigation department staffers “loan consultants” is simply a public relations technique used by banks.
Our firm has encountered several clients who have been led by these consultants into believing that they do not need to contest a foreclosure action in court. If you have been served with a lawsuit, you must provide a legal answer to it regardless if you are attempting to settle the case. In fact, in many instances, you may be in contact with your “loan consultant” or “loan concierge” until the day before a sheriff’s sale. This will, however, not stall or prevent the bank’s actions to foreclose on your residence.
When you are sued for foreclosure, you are in an adversarial proceeding with your bank, regardless of your past experience with them. It is incorrect to assume that their employees are there to protect your interests. In reality, their communications with you are you protect and assist their employer. If you are sued for foreclosure and require an advocate to negotiate on your behalf, you should obtain private counsel. Calling someone who can summarily reject your loan modification application a “personal loan consultant” is simply placing lipstick on a pig.