Must Pull Home Off Market for Modification Attempt?

[sn3ak3rp1mp]

Hello everyone!

* Chase demands home be pulled off the market to process modification? *

My girlfriend (whom I live with) is currently 7 months into the foreclosure process, I believe she's technically in the redemption period as there was a sheriff sale of the property on July 8th. On the advice of an attorney she ceased making mortgage payments in Jan 09 and the house was listed on the open market for sale. There has been only one offer to date which was for 1/2 the amount Chase listed at the sheriff sale ($220,000). Chase never responded to that offer.

She was divorced last year and under the terms of the divorce was left in the home. The ex-husband has since moved out of state and has no interest in the property any longer. However, per the terms of the divorce if payments are missed, the home is listed on the market and any proceeds from sale are split (fat chance of that!) or if there is a loss it is her responsibility 100%.

She has been trying without success to work with Chase on a loan modification. We have sent in copies of the modification package three times, twice with the original paperwork and the last time with the Making Home Affordable paperwork. We have fully documented her financial position, providing all P&L statements, bank statements, etc. as requested.

Shortly after the sheriff sale, upon calling Chase she was told that "the foreclosure process has been halted" because they were "reviewing a loan modification" and that she should call back in two weeks. On Monday, she called back in for an update and was told that since the house was listed for sale the modification could not proceed. She was asked to cancel the real estate sales agreement, fax in proof of cancellation, and within 48 hours the modification package would begin being reviewed.

I have heard that you cannot play both sides, that is you cannot pursue both a short sale and a modification at the same time, is that true? Should she cancel the sales agreement to get Chase working on the modification? She would like to stay in the home if at all possible, but being in the redemption period I am very skeptical of everything Chase says. There is nothing in writing from them telling us where she is in the process. I also think this business of the foreclosure process being stopped is total BS.

What are your thoughts?

Thanks!

[ugh_2009]

I believe Chase is correct, when you apply for HAMP you declare that you intent to stay in the house.