In the last week, I've received 3 calls from homeowners asking for my help and informing me that either in the middle of their loan modification with their mortgage company or obtaining fully approved loan modifications, they were surprised to receive a "Notice of Trustee Sale" taped to the door of their home. A Notice of Trustee Sale is a legal notice to a homeowner that their home is going to the auction block 21 days after the notice date. Pretty gut wrenching. The question comes to mind, why are these homeowners surprised?
After the homeowner's bank personnel told them repeatedly during their loan workout process not to worry and that their loan modification would stop the foreclosure process, they had every right to be surprised. Unfortunately with all three homeowners, they did not obtain confirmation that their FORECLOSURE PROCESS WAS DELAYED AND/OR HALTED IN WRITING. What distressed homeowners are NEVER TOLD: The loan workout or loan modification department never communicates with this loss mitigation (handles foreclosed properties) and short sale departments. In my experience, I've had numerous conversations with bank personnel confirming this to be true.
Most Realtors, Real estate brokers, and personnel working with these banks on short sales and/or foreclosures will confirm that most internal operations are flying by the seat of their pants. A tremendous amount of disorganization, lost files, and lack of communication is frighteningly prevalent among the large banks.
Among the smaller banks, there seems to be a noticeable difference in service, communication and positive action. The take home message for all distressed homeowners: If you are applying for a loan modification from your bank, obtain confirmation from your bank/lender that your foreclosure timeline is being delayed, or halted.
I hate to see anyone losing their home when attempting to do the right thing for their families! Any questions about California's foreclosure time line, please contact me.
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