Sunday, January 2, 2011

AVOIDING FORECLOSURE WITH A LOAN MODIFICATION

Today, we received an unfortunate call from two distressed homeowners who found a Notice of Trustee Sale taped to the front door of their home.  What does this mean?  The bank and/or their mortgage servicer has notified the homeowner that in 21 days from the date of the Notice, their home goes to Auction and the home is sold to the highest bidder in a court setting, not pretty.  

Unbeknown to this couple, the foreclosure timeline proceeded forward while this upper middle class couple had successfully obtained an approved loan modification.  Keep in mind, their approved loan modification came from the same bank who is scheduling to foreclose on their home!!!  Wow?!?

Yes, this is just plain strange and NOT surprising. The left hand doesn't communicate to the right hand!  Several months ago, I blogged on the topic of the banks' loan modification and loss mitigation departments never communicating with each other.  Another case and many cases out there just like this young couple.

Viewing from the borrower's perspective, one might assume that this is malicious intent by the bank, the banks must be on a mission to foreclose on their borrowers' homes.  Rumors and the news support distressed borrowers' suspicion that the banks are receiving subsidies to foreclose on them, a justifiable paranoia. 

My advice, don't give up, if you have a bonafide APPROVED loan modification from your mortgage servicer, that means you as the borrower have signed an agreement to the terms of the loan modification provided by your mortage servicer, there's a strong chance you will avoid foreclosure.  
It is a matter of providing documentation of your approved loan modification to the loss mitigation department of your bank and/or mortgage servicer.   It is advisable that you seek legal counsel when you find yourself in a similar situation of these distressed homeowners.  

 



 

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