Foreclosure During Loan Modification

The foreclosure process is typically a long, and winding road for most homeowners. Most mortgage companies don’t provide those facing foreclosure with a clear path to catch up on payments and save the home. The truth is that once you fall behind on your monthly mortgage payments, the bank aims to foreclose on the property, and if you don’t know the right steps to avoid having the home sold at auction, it can be next to impossible to stop foreclosure.

Many Californians have been tricked into believing that they will qualify for a loan modification, which will reduce their monthly payments making it possible for them to save the home. During the period when a homeowner is applying, and in review for a loan modification, the bank can no longer legally foreclose on the home. Not surprisingly however, foreclosure during loan modifications happen somewhat regularly despite new laws prohibiting this action.

The term given to this practice is “Dual-Tracking.” Dual tracking occurs when a lender is both considering a homeowner for a loan modification, while simultaneously pushing them through the foreclosure process. The California Homeowners Bill or Rights was designed to protect consumers from these types of predatory lending practices. If you have lost your home to foreclosure during the loan modification process, you may have a strong legal case against your mortgage company.

Do Not Let Them Take Your Home

The reason that dual tracking, and foreclosure during the loan modification process are illegal is because mortgage companies were pushing homeowners up to the last possible moment before denying a loan modification and selling the home at auction. In some cases, they weren’t even denied the loan modification!

If you’re currently in the loan modification process, and have submitted a package for review by your lender – you should not be receiving any new foreclosure notices from their attorneys. If you are still receiving notices or have been foreclosed on without a loan modification denial, you may have legal rights to help you save your home.

Contact a Foreclosure Attorney

If you lost your home to foreclosure trying to be approved for a loan modification, or while making trial payments, you need to contact a foreclosure attorney. Our legal team has been able to help other homeowners just like you avoid foreclosure through mortgage litigation. Call today for your free legal consultation to get started.

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