Can I Modify My Mortgage During A Foreclosure?

Receiving notice that your home has gone into foreclosure can stop you in your tracks. A million thoughts will run through your mind when this happens; like where will your family live if you lose your home, and how long will it be before the lender comes and tries to make you vacate? These are important things to know, but the foreclosure process can be complicated and if you are being foreclosed on it is a good bet the lender will not explain the process to you. There are ways to stop a foreclosure though, and one of those ways is to ask if your lender will modify your mortgage.

A modification is essentially a rewrite of your mortgage loan, just at more favorable terms. This is a huge plus, as is the prohibition on continuing a foreclosure while a request to modify is pending. When lenders go down both roads in this way, it is referred to as dual tracking, and it is not allowed. Here are some of the things lenders cannot do, that may be considered dual tracking:

•         Send notices of intent to foreclose when a modification request has been made.

•         Initiate or maintain a foreclosure when a modification request has been made.

•         Fail to follow certain procedures associated with processing the modification request application. Basically, a lender cannot give you the “runaround” regarding your application status.

•         Fail to respond to or address a complaint about debt collection practices. Collectors are prohibited from engaging in certain practices when it comes to how debt is collected, and if the consumer makes a complaint it has to be addressed.

Even though there are rules in place, they are not always followed. This is not to say there are intentional missteps taken, but any misstep regarding your request for a modification should be addressed. We have experience dealing with lenders, and know what they can and cannot do with your application. Let us help you reduce your mortgage payments today by calling us for help with a mortgage loan modification. The sooner you are able to get your payments lowered, the sooner you can get back on track with your monthly budget and put a stop to potential foreclosure action.

If you have more questions about foreclosures and mortgage modifications, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.