Hi Steve,

It really depends on your lender. I do loan modifications with an attorney. Our office is in San Jose, Ca.

You really need to be on top of the process. I have stopped a few foreclosures within days of the sale date by getting in all of the required documents.

You have to get everything in writing. Usually, if you have all of your info in and your with a negotiatior they will not foreclose while your trying to work out a modification.

It is not a guarantee, you really should have a plan and know how your going to proceed.

I am happy to answer questions and maybe give tips to make sure your on the right direction..

JoAnna Jensen
Volo Law Group
Realtor Paralegal
925 699 5041

Having negotiated hundreds of these my experience has been that in most cases all foreclosure activity will continue just as if you had done nothing. Some lenders will halt the process when they are in receipt of a QWR that cites a servicing issue under RESPA, or if you provide a complete financial assistance request along with all required documentation.

Almost always a foreclosure sale date can be postponed, or delayed if you are working with the lender to modify your mortgage.

Dan Harris

Usually if you are in a notice of default or notice of trustee sale, this is assuming that you are behind on payments and that the notice of default or notice of trustee sale is not the result of not paying property taxes - then having an Attorney dealing with loan modifications and handling the negotiations is one way to address the situation. The other way would be to try a short sale. In general, finding an expert in the area is the best way to handle these situations.

Dear Steve,

It often depends on the contact at the Lender. Sometimes, they may issue a continuance to allow time for settlement and/or negotiations to take place. I suggest you contact these folks who have a proven track record of results in dealing with many lenders in situations similar to yours (where the per-foreclosure process may have commenced).

http://www.aalmg.com/contact-us.php

Good Luck!

The foreclosure process keeps going no matter what...

The foreclosure process will just go on as detailed in the note.

In most cases all foreclosure activity will continue just as if you had done nothing.

However some lenders ahve begun to halt the process when they are in receipt of a QWR that cites a servicing issue under RESPA.

Typically the sale date can be postponed, or delayed if you are working with the lender to modify your mortgage.

my name is
claudia
vargas i am negotiating a lot of loan mods for client mostly in the area of NY/queens and while it is true that u can do it yourself i think is better to hire someone of course someone you trust and someone that would do the work. Because it is alot of work and time. and most people don't want another job . so if yoo need help e-mail me at kaludia77@aol.com or call me at 6462796488

Another option that will be allowed starting on Oct. 1st will be the ability to refinance into an FHA Secure loan. The current Lender will need to participate for it to occur. You can finance up to 90% of the current Market Value (this is assuming that you have no equity); maximum loan amount of $550,400; missed mortgage payments due to interest rate adjustments (need to prove it); and have the ability to qualify for the new mortgage. This was a new bill signed a few weeks ago, which you can either google "Recovery Act" or go to http://www.hud.gov for more specific information. Also, HUD has some Free Consultants to assist you in your crisis.

Steve:

It is my experience that the lender will pursue all remedies under the law, even while you are negotiating a loan modification. This mean, if you are in default on your loan, they will file the notice of default and start the countdown to the foreclosure (since it takes a minimum of 111 days in California). They will usually hold off on filing the Notice of Trustee Sale, unless and until they are unable to work out a satisfactory loan modification. However, I have also seen the NTS being filed and the auction date extended during the modification process.

The one thing you want to watch closely, is that the loan modification department and the foreclosure department are speaking with each other. If you get a Notice of Trustee Sale filed on your home you need to be proactive in making sure the auction gets postponed. I know of instances, both with people working on a loan modification / refinance and others who were in an approved short sale situations, who had their homes go to auction on the courthouse steps. Often the two departments are in different states and don't share the same computer data base.

Good luck in working out your loan modification. If it grinds to a halt or does not seem to be moving at all, please contact me. I am working with a group of attorneys who are having a lot of success helping people through the loan mod process. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

good evening steve....no...(foreclosure stops) ...a loan modifaication is a grace period of (many times up to five years) where the reamaining amount you owe,and the remaining amortization on the loan (number of years and months left to pay) , is re-written at a lower/ and fixed interest reate to enable you to show more income for a take-out loan in the futrue....get your credit corrected...not have a rate that keeps climbing, and give you some breathing room from your current issues that are making it difficult to make your payment.....i hope that helps......bob mcclure- mortgage now- farmington, michigan (248) 974-4444 direct cell....almost 14 yrs. of experience.....licensed in 19 states......

Steve,

Normally the bank will withdraw the notice of default when a loan modification is in process. However, whether or not a loan modification process will start will be dependent on how far into the default a home owner is on the loan.
If the bank has agreed to modify the loan, the notice of default is retracted. There is obviously some amount of "limbo" between request for modification and agreement to modify.

CJ