Foreclosure in 85326>Question Details

Trex, Other/Just Looking in 85326

can my home be foreclosed if its in the middle of a loan modification?

Asked by Trex, 85326 Wed May 6, 2009

modification

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11
Trex,

It is a possibility. Many times with the banks the right hand doesn't know what the left hand is doing. Do you have a Trustee Sale date (foreclosure date)? If you do but you are in the middle of a modification just keep on them and make sure that they have postponed the date in order to allow for the modification. If you don't know if you have a foreclosure date feel free to call or email me and I'll look it up for you.

If there is anything else I can can do to help, please feel free to call.

With Your Success in Mind,

Shar Rundio
Keller Williams Integrity First Realty
Mesa, AZ
480.560.7255
shar@speakingofphoenixrealestate.com
Twitter: @SharRundio
1 vote Thank Flag Link Wed May 6, 2009
Yes and no it depends upon you lender some lenders stop any foreclosure activity while they are trying to help you modify the loan and some continue on the parllel path. Hope this help.Good luck.
1 vote Thank Flag Link Wed May 6, 2009
our house was sold in the middle of doing a mod. paper work was turned in before the dead line. sold anyway, all the mortgage company can say it SORRY.
0 votes Thank Flag Link Tue Jul 23, 2013
did you have an attorney at the time?
Flag Wed Aug 24, 2016
Did you have an attorney at the time?
Flag Wed Aug 24, 2016
Hi Trex, Essentially there are two parts of the bank working at the same time. There is a department working with you on the loan modification and then there is the collection side of the bank who will put up notices of foreclosure sales and so forth. You should discuss any notices with the person helping you with the loan modification. Ask that person to call the collection division about the notice in the paper to make sure they have been notified that a loan modification is in progress! If not, yes, they could foreclose. We take those notices very seriously and are always watching for them on properties we are negotiation short sales on because the same thing can happen in that situation as well. Most of the time these things work out. The banks were even foreclosing illegally in the beginning because, they too, were caught off guard and not ready for what would come. These days they don't really want to foreclose as they have a glut of these properties. They are working better with the homeowners and you will probably be fine. Just make sure you communicate with them about any notices. Find out where the notices are in your city, whether they are at an online business magazine or printed in your local paper and check every day. There must be 2 notices in published in your local area before they can foreclose. If they are attempting to foreclose and you have not gotten satisfaction from the bank on it, then see an attorney. Here in Virginia you can file in Circuit Court and stop that action temporarily. That may allow you time to get the loan modification done or redeem your mortgage. Good luck on all this!
0 votes Thank Flag Link Fri Apr 13, 2012
Trex, Since all of your answers have come from real estate professionals, I thought I would chime in some validation from a lending perspective. The absolute answer is ABSOLUTELY!!! I have known home owners personally who lost their homes in this manner. In fact, the house went up for sale while they were still making the modification payments and thought they were on the path to final approval. As much as I love helping people finance their homes, I have to ditto the comments below and advise to never, ever trust one employee's comments and promises as anything of substance. Get everything is writing and stay 100% on top of the process. Sorry to sound so negative, but we all want to believe the bank "cares"....and "caring" has nothing to do with the foreclosure process. Best of luck to you!
0 votes Thank Flag Link Thu Jan 12, 2012
It is possible for your lender to foreclose on your property during a loan modification process, but they shouldn't. The Regulation of Mortgaging Servicing Act was proposed last year to stop the dual path of foreclosure and loan modification. For more information, please visit our blog post: http://blog.mycaal.com/regulation-of-mortgage-servicing-act-…
Web Reference: http://www.mycaal.com
0 votes Thank Flag Link Thu Jan 12, 2012
Yes absolutely. It happens all the time unfortunately. Get everything in writing from the bank - don't trust anything they tell you over the phone. Even if they SAY they won't foreclose they often will foreclose.http:

Carmen Brodeur
Realtor - Former Attorney
0 votes Thank Flag Link Mon Mar 29, 2010
90% of loan modifactions go back into default within the first six months. For the Obama program, they MUST stop the foreclosure.
0 votes Thank Flag Link Tue Sep 15, 2009
If you hire the right loan modification attorney they should be able to stop the foreclosure unless there are extenuating circumstances that the loan modification attorney can't mitigate. In general, a bank can't foreclose on your home during a loan modification, but that is assuming your loan modification has handled the issue up front. If you have someone that doesn't know what they are doing, then buyer beware.
Web Reference: http://www.CallALMS.com
0 votes Thank Flag Link Sun Sep 13, 2009
The answer is yes! The banks have different departments doing different things. One department is doing the foreclosure and another department is doing the loan modification. They department doing the loan modification typically will not put the foreclosure on hold until the modification is approved. So if your getting closer to the sale date make sure your call the rep handling the modification and try to get the case on hold. If they say the case is going to be placed on hold , try to get something in writing.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield, Wisconsin
0 votes Thank Flag Link Fri May 8, 2009
Trex,

Make sure that all parties are aware of what you are doing! Lender with loan remodification and your current lender and or any agents or attorneys involved. Also get it documented! As long as all parties are involved you should be o.k however cover your back, and also request the foreclosure be postponed and request documentation, always, always!

Lucinda Tkach
Windermere


Lucinda Tkach
0 votes Thank Flag Link Thu May 7, 2009
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