Last Updated Oct 21, 2010 11:44 AM EDT  Are you in loan modification hell?  was in loan modification hell, courtesy of her lender,  . In a story that's becoming so commonplace it's scary, she filed for bankruptcy to deal with her financial trauma (job loss and impending divorce). Even after months and months of waiting, and after submitting her paperwork three times, she never heard from Wells Fargo about her  , was fed up and  so Ms. Giguere could question someone face-to-face about her loan modification. Turns out, she was rejected because Wells Fargo said she failed to submit a financial worksheet - a document that Wells Fargo never requested,  , senior vice president of Wells Fargo Home Mortgage Servicing, admitted under oath.  story, Judge Haine says that he and his fellow bankruptcy judges are seeing more people file for bankruptcy to avoid foreclosure. But that isn't helping those who want to get their loans modified.  (who asked that I not use her last name because she is continuing to try to negotiate a loan modification with her big box lender), has also been in loan modification hell for the past few months. She contacted me about a month ago, wondering if the "trial period" loan modification she had been offered was real. I told her that lenders only offer trial modifications - and after you've paid on time for three months, that trial modification is supposed to be made permanent.  (I've been hearing from a reader who has been in a trial modification for five months and was been told to keep on making more trial loan modification payments because the big box lender is too busy to do make the trial loan mod permanent.)  I told Martha to stay in touch with her lender, calling back daily if necessary to prod them into action.  After hearing nothing for a month, she started calling her lender only to find out that her loan modification application had been canceled because of incorrect information (not supplied by Martha). They claimed she was no longer living in her property, which Martha says isn't true.  I have been in touch with senior-level officials at the  who acknowledge that the loan modification program isn't going exactly as planned. They suggest if you're having problems getting your lender to finalize your loan modification, you should contact the Treasury Department directly to complain if your lender is a national lender. You should contact your state banking and finance regulator for a state-chartered institution.  If you want your case to get elevated, you'll need to provide them with the following:  Be sure to stay in touch with your lender about your loan modification. Call daily or every other day. You need the lender to realize that you're not going to give up and that you expect action.  And hopefully, if you're in loan modification hell, you'll find a way out.  © 2009 CBS Interactive Inc.. All Rights Reserved.
UPDATE: New rules regarding HAMP loan modifications went into effect June 1, 2010, including new income requirements. And, the Loan Modification Hell Horror Stories continue.  UPDATE 2: Check out my latest post: Loan Modification Hell: New Solutions To Avoid Losing Your Home.  UPDATE 3: Let the ...