Foreclosure in 91204>Question Details

Carrieg, Other/Just Looking in 91204

Does a loan modification by a landlord void a 90 day notice from a bank listed on a trustee's deed upon sale?

Asked by Carrieg, 91204 Fri Dec 4, 2009

We were served a 90 day notice that our landlord is in foreclosure and that we have to move. Our landlord says he is doing a loan modification and that freezes the action of the bank to force us out. The bank is listed as the trustee on the trustee's deed of sale. Should we listen to our landlord or expect to be moving out in 90 days? Please help.

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Tommy Lee’s answer
Carrie,
Looks like you have a number of answers but none of them gives you a concrete answer. Why? Because every financial entity that has mortgages has different rules. Suppose the lien holder is a major bank. Chaces are then bank will try to work with the landlord. But suppose it is a investment company that bought the mortgage on the open market. They may not be willing to do such a modification. Now suppose the lender is a private lender locally. They may want the property rather than work with the landlord.

Another thing to think about is that most loan modifications do not succeed. I work short sales in your area and pretty much everyone I contact says they are going to get a loan modification. But right now I thnk the percentage that get through the paperwork is about 16%.

My suggestion is to start looking "just in case". If you need help, please give me a call or email me at the email address below.

Tommy Lee
DRE #01723594
tommy.lee@dilbeck.com
323.821.2292
0 votes Thank Flag Link Fri Apr 23, 2010
HI Stressed Tennant!!
The way Loan Mods work is kind of Crazy.
When a owner submits a loan mod package to "Most Lenders" the lender will take the time to see if the owner qualifies for any product the lender has to offer. The lender also doesnt want to start the foreclosure timeline over so instead of cancelling the foreclosure they put it on hold. I just stopped one last week. The lender wont cancell it but they will put it on hold in order to review all docs to see if the owner qualifys for any possible loan mod.
the problem arises when realtors or others start sending letters to the home trying to "Help" almost scaring people to death saying you have a sale on the court house steps on such and such date when they no longer do. So in short, yes, when the owner talks to the lender they can possibly put every thing on hold. you can call the trustee yourself and ask, it is public info. they will tell you it is on hold for mutual workout. if you start receiving letters dont pay attention!!!

Best of Luck
JoAnna Jensen
Realtor Legal Assistant
925 699 5041
0 votes Thank Flag Link Wed Apr 21, 2010
Hi Carrie, if the modification was consummated by both borrower and lender then it would trump a foreclosure action. Ask the landlord for a copy of the fully executed (signed) modification agreement. If they can't furnish it, there may not be a modification after all. Usually the lender is farming out the foreclosure work to a separate trustee service company and the communication between the two is not always great. I have seen cases where the trustee kept on foreclosing even after a modification had been issued.

Unfortunately you are not living in the city of LA which has rent control that is very pro-tenant.
0 votes Thank Flag Link Wed Apr 21, 2010
Hello Carrieg,

The foreclosure process runs parallel with loan modification or short sale. After the legal deadlines, it is solely up to the lender to put an extension or send it to the TS-Trustee Sale with fixed date. If your landlord didn’t pay, then process starts and after 3 months lender can record NOD-Notice of Default.

However, because of so many foreclosures, it takes sometimes little bit longer. After NOD was filed, another 3 months and than it could go to the TS-Trustee Sale. There are some technicalities as well, like county recording, etc. (another 21-25 days)., but in general after 6 months of no payment, the property goes to TS.

However, Landlord can reinstate the loan paying the defaulted amount plus penalties, interest and some costs or landlord can finalize successfully the loan modification or short sale. If it is a short sale, because there will be a new landlord, probably he/she will try to keep you there as a tenant (no vacancy, no cleaning, no maintenance or painting, no costs - better for new landlord).

But it is about your situation, you as a tenant have to continue pay your payments. If not, it will be a breach of lease contract. And in case if your landlord solved the problem with the bank, than landlord can start your eviction because of breach of contract. If that is a big problem for you (job, school, children, etc.), than it is better for you to be on top of it and spend some time for public records research and at the same time ask the papers from your landlord.

If he cooperates and honest, than hopefully you are in good condition and you will know and be ready with your exit strategies, but if not, and your landlord is not cooperating, than better to consult an attorney, who will research and then you will get an exact answer for your situation with landlord and the attorney will protect your rights against your landlord.

I hope this was kind of helpful.
Respectfully,
0 votes Thank Flag Link Fri Dec 4, 2009
Hi Carrieg,
I am a Legal Assistant and I work for an Attorney who specializes in Loan Modifications. Things to consider....

1) Not all lenders put foreclosure sale dates on hold once you start a mod. some do some dont. I have stopped several sale dates with certain lenders within 24 hours of the sale date. However some lenders wont stop the sale specially if it is not their primary residence. I am not saying your landlord is not being honest I am saying you should ask for verificiation. It is very simple. If you received a notice from the trustee it is public info, any one can call. You can call or maybe even check online on the paper you have to see if the sale date is still valid. If the sale date when you call the trustee is still valid your sale date is most likely still on. When the lender stops the sale they let the trustee know immediately then the trusttee updates their info. Which is why for the most part when realtors call homeowners on old info and they dont check it to see if it has been updates they are calling the homeowner to scare them needlessly..... Always check with the trustee!!!!

2) Your landlord may be telling you it is stopped to get rent when it is not stopped either way you have the right to know the legal status. As a legal assistant I hate hearing that landlords dont pay the lender but expect the renter to pay them???? that should be illegal..

3) Your landlord could be correct it may be modified if it is it will be in writing ask for a copy!!!, Ask them for prof ask for reduction in rent. If you received that notice they have skipped several months payments. they have been pocketing your money. the purpose of your money is for them to pay rent... This is not intended as legal advice. In calif your landlord has 90 days to evict you.

I have been doing loan mods for almost 2 years. Lenders dont modify without something in writing. Dont get suckered!!!! I hate it when people are taken advantage of by anyone.

JoAnna Jensen
Legal Assistant Realtor
Pleasanton CA
0 votes Thank Flag Link Fri Dec 4, 2009
Yes it will put a hold on the foreclosure process untill the loan is either modified or they do not come to terms. Keep in close contact with your landlord every week to check status on the loan modification to make sure they are still working on it and you know if you need to move out or not.

John & Sarena Villaescusa
Owner/Realtor/Broker
Keller Williams Realty
Cell: 562-818-2671
Email: Johnv@kw.com
Website: http://www.VGroupHomes.com
Web Reference: http://www.VGroupHomes.com
0 votes Thank Flag Link Fri Dec 4, 2009
A loan modification should stop the foreclsoure if in fact it is completed. The only way to confirm if it will effect the foreclosue sale is to contact the attorney handling the foreclosue sale and or the eviction. I would not just take the landlords word. It is always best to confirm what your told.



Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Fri Dec 4, 2009
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