Can My Lender Foreclose If I Am Trying To Modifying My Mortgage?

Asking for a loan modification of your mortgage is a good idea if you are behind on your payments. A mortgage modification will change the terms of your loan, making your payments more manageable. When you receive a modification of your mortgage you can expect to have a lower interest rate, which means lower payments and you might also be allowed to skip a payment, which means extra cash on hand for other bills. But sometimes lenders drag their feet when processing a modification request, and all too often the right hand does not know what the left hand is doing and it is not uncommon for a foreclosure to be initiated during your modification efforts. If this happens to you, it is important to know your rights.

The process of engaging in foreclosure while considering a loan modification request is referred to as dual tracking, and it is prohibited. The results of dual tracking can include:

•         An erroneous belief on the part of the homeowner that their modification has been denied. This leaves the borrower in the unenviable position of having to defend the foreclosure because they believe they have not been approved for a modification. The undue stress this puts on an already distressed consumer is immeasurable.

•         When forced to defend a foreclosure because of a mistaken belief that a loan modification was not possible, many homeowners simply give up and allow the bank to take back their house. The result is a countless number of would-be homeowners finding themselves without a home due to the practice of dual tracking.

The process of loan modification is confusing, and it becomes even more so when the lender engages in dual tracking practices. If you are considering a loan modification, make sure you have competent representation to protect your interests. When a knowledgeable attorney takes on your request to modify your mortgage, you have the peace of mind knowing that any attempt to foreclose will be met with stiff legal opposition. For help getting back on track with your mortgage payments, or to find out more about loan modification and what the lender can and cannot do during the process, call us today.

For more information about dual tracking and loan 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.