A dormant lender shows up after 10 years, the homeowner seeks help from the nonprofit Alliance of Consumer Advocates, and avoids foreclosure with a free loan modification.


Mr. Agustin Barrera’s original lender went bankrupt in 2010. Another lender came forward after ten years in 2020, demanding an overdue amount of $168,096.08 and putting his property in foreclosure. Mr. Agustin contacted the nonprofit Alliance of Consumer Advocates; a federally licensed 501C3 non-profit loss mitigation clinic focused on homeownership preservation and affordable housing.

Mr Agustin Barrera’s bank initially refused his request for assistance before being referred to the non-profit legal clinic specializing in all loss mitigation and stay-at-home strategies.

Mr Barrera didn’t let the refusal deter him from trying again through the non-profit Alliance of Consumer Advocates. A trained and experienced volunteer senior nonprofit loss mitigation attorney helped him gather the correct information to identify the actual owner of the loan, not just the servicer. They also helped Augustine properly appeal the denial, even though the lender felt he hadn’t made any significant changes to his financial situation after his initial request.

The client modification process was complex. Most owners are rejected multiple times before approval; the process is often due to confusing documents mixed up between the owner and the servicer, who in most cases is not the owner of the loan. His lender has been accused of claiming he never received any “lost” documents or that Mr Barrera never sent them everything. In addition, they also use a script to avoid sending a written confirmation of the loan modification. They also tracked the app weekly. If a homeowner wants to avoid foreclosure, they need to have a clear plan for updating their loan and a contingency plan just in case.

Mr. Barrera agreed that the nonprofit legal clinic would have a few predefined and ready “backup plans” in place in case his lender rejected his request for assistance again, even with the help of the Nonprofit Alliance of Consumers. Advocates.

Mr. Barerra was introduced to more aggressive loss mitigation strategies that can incorporate nonprofit clinics’ strategic alliances that include private equity hedge funds, a consortium of nearly 4,000 private investors, CPAs retired, direct mortgage lenders, real estate brokers, foreclosure defense attorneys, bankruptcy attorneys as well as wrongful foreclosure attorneys who are ready and willing to fully pursue wrongful foreclosure cases on a one-to-one basis. 100% emergency, ZERO out-of-pocket costs for eligible customers who are referred by the non-profit Consumer Advocates Alliance.

According to attorney Fernando Leone, senior director of legal services for the nonprofit Alliance of Consumer Advocates, “Lucky for Augustine as well as her lender; being over-prepared and not needing to be is much better. than being denied assistance at the last minute and not having enough time to look for other alternatives. “B” and/or a more aggressive “C” plan, they were thrilled to see his lender voluntarily provide him with the free loan modification instead.”

The nonprofit Alliance of Consumer Advocates helped Mr. Barrera reduce his interest rate from an adjustable rate of 10.50% to a low fixed rate of 2.90% and reduced his mortgage payment to lasting payment of $1,020.88. He expressed his sincere gratitude and appreciation to the nonprofit Alliance of Consumer Advocates for all the hard work of its staff in helping him and his family keep their home.

The primary goal of the nonprofit Alliance of Consumer Advocates is to educate landlords about their legal consumer rights, which will enable them to make an informed decision about their next step toward preserving property. For advice, call (855) NACA-HELP (855) 622-2435 or check them out at http://www.NACALaw.org.

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