Foreclosure Notice while waiting for Loan Mod approval

[erinay92]

By early Dec, I received the loan mod packet via Fed Ex, filled it out and returned it with the docs. By Dec, I was 6 months behind, but had 4 of the 6 payments saved up. While talking to B of A, they said I was in pre-foreclosure but they stall any foreclosure proceedings during any workout assistance program review.

In early Jan, I received a summons to appear in the county courthouse for a Notice of Intent to Foreclose while still waiting for approval. I called B of A (HOPE Team) and they said not to worry because my loan mod was still in the approval process and they are a little behind because of the holidays. By the end of this month, I'll have 6 of now 7 late payments and by next month, I'll have the full amount of late payments.

At what point do they at least try to work with you?
By next month should the full amount of delinquent payments but I dont know if I'll have enough to cover the late fees and attorney (bull$#!t) fees. I would think they would take as much as they can from me rather than deny any payments as I continue to fall behind month after month.

Why would they begin the foreclosure process when they should know I'm being reviewed for a loan mod and they said they stall any further proceedings during any workout programs? I have no idea if I'll get approved which is why I'm saving every paycheck, but I qualified for the initial process. Except for my mortgage, I have no debt and I still have a full income.

How far along will they proceed with foreclosure even if I have the full amount of the delinquent balance (or within $1000 or so) but not the late fees and attorney (bull$#!t) fees. How long does the foreclosure process take in IL? And will I have to hire an attorney and pay MORE money just to keep from losing it or to slow the process down?

Thanks everyone!

[sweetfacemommy]

First thing: DO NOT SEND THEM ANY MONEY! It's typical that they proceed with the foreclosure process while you are under review. Many times they simply postpone the sale date if one has been set. If I were you I would save that money just in case the mod is not approved and you need to move.

[erinay92]

Ok, I was under the impression that any forclosure proceedings would be halted while the mod is under review. By the end of this month, I'll have 6 or 7 late payments. By next month, I'll have 8 or the 8 late payments. I dont know if I'll have enough to cover late fees & now the lawyers $1500 fee though. I hope this isnt a huge problem...

[kymmer116]

Ok, I was under the impression that any forclosure proceedings would be halted while the mod is under review. By the end of this month, I'll have 6 or 7 late payments. By next month, I'll have 8 or the 8 late payments. I dont know if I'll have enough to cover late fees & now the lawyers $1500 fee though. I hope this isnt a huge problem...

It depends on the state you live in. If your are in foreclosure and have a sale date and are pretty far into the process, (like in VA they can still proceed w/the foreclosure) There are some other states too, just not too sure which ones they are.

[sweetfacemommy]

erinay-
I'm not trying to scare you but, BoA can foreclose on you despite you being in review for a modification. It happened to us last week. Our mod was approved on 12/29 and they foreclosed on 1/5. The mod department didn't even know they had bought the house back. As of right now, the sale has been rescinded but our file is still on "hold" at the attorney's office. I don't beleive a word BoA says and I wouldn't be surprised if they still foreclosed on someone after they paid the past due payments.

[Knowledgeispower]

Erinay, What state are you in?

[erinay92]

Illinois....I heard the foreclosure procedure in IL was very difficult and takes a long time. I still fear that while I'm sitting here in review for a loan mod, they will foreclose on my house. I owe $12,500 right now but in two weeks, I'll have about $10,000. By the end of next month, I'll have about $14,000, which should be pretty close to the full balance (I cant predict late & lawyer fees). Will a negotiator eventually reach out to me so I can at least work out an agreement? Will they even try to make an agreement? Those are both scenarios if the loan mod is denied. I'm hoping it's approved but in the meantime, I'm saving everything I can.

[samtall]

I live in CA and am 4 months behind..Have received default letter but nothing since account has been in "processing" status. So are you guys saying they can still foreclose on my home?? How will I know. I call every week and have never been told that I am in the foreclosure process. I am 10,220. I was told today to get your house out of foreclosure you just need to bring it within 90 days current to get it out of foreclosure. Can someone please explain what's the TRUTH on this. Desperate and confused

[goldie]

"I live in CA and am 4 months behind..Have received default letter but nothing since account has been in "processing" status. So are you guys saying they can still foreclose on my home?? How will I know"

I periodically check the county recorder's website to see if my name pops up with anything new. If your county has a searachable online database, you might want to look there. So far I have no NOD.

[goldie]

I thought of something else you can do. Go to RealtyTrac website and search your zip. THey will want you to sign up for the program (I didn't), but I am e-mailed each time there is a "Foreclosure Alert" (which can also just be a NOD recorded at the county). I agreed to get their e-mail, but its been 2 years, so don't remember how I got signed up for e-mail. I'm sure you'll figure it out.

Every time I see one of those in my e-mail, I catch my breath, and go "whew, it wasn't me this time". Its helpful to keep an eye on the neighborhood foreclosures too. I wouldn't DEPEND upon THAT to notify you though - just an optional "tool" to use. I'm in (northern) California too.

[erinay92]

My question is, how can they begin to foreclose when at the same time, your'e waiting for approval on a loan mod, which takes a couple months. Also, if the loan mod is denied, at what point do they try to work out a plan to make you current?

[goldie]

I can't answer that for sure, as everyone's loan experience is unique. While they are not SUPPOSED to foreclose on you if you are in a mod, its happened. They are supposed to work with you if your mod falls through, to explore other options, but to what extent is anyone's guess.

Who is your investor? I think in a Fannie/Freddie there is a HAFA program (home something foreclosure alternative) and you might actually be able to rent back for a year. Maybe its time to contact the office of the president just to make sure everything is on track and ask her if they can notate your file that you are attempting to modify. Sometimes the right hand doesn't know what the left is doing. The notes can help (if they bother to read them).

Review in the foreclosure laws/timelines applicable to your state (I think this site has them posted). I'm in CA and we have nonjudicial FC process here. The only thing I have received is a Notice of Intent to FC and no actual Notice of Default has been recorded against my property as of yet.

[erinay92]

I'm safe with the timelines and I should have the delinquent balance by next month if the mod is denied. I want out of foreclosure though. This is BS. Without trying to work something out with me, they referred me for a loan mod, then while waiting for approval, denial or a workout agreement, I got slapped with a summons. HOPE said not to worry cuz there's no sale date yet but as long as I have a summons that I cant ignore, I'm gonna worry.

[samtall]

I actually received at "Notice to Accelerate" that expired yesterday. Is that the same as a Notice of Default?

[davephx]

Yes

The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months.

[davephx]

The servicers often start the foreclosure process even though the HAMP directives imply they should not.

All they do is hold off the sale while under trials. But if denied they can sell the next day with no notice. Its in the trial mod agreement.

Treasury has tried to slow that process by new notification requirements if denied and delay sale. But seems that directive like many others is being ignored.

And we have the terrible "accidental" sales while on trials or in final mod stage and the modification dept has no clue that the foreclosure dept sold the home.

[samtall]

Thank you davephx...so how do I avoid foreclosure while I am waiting to see what happens with the modification...

[davephx]

Thank you davephx...so how do I avoid foreclosure while I am waiting to see what happens with the modification...

Assume you mean the foreclosure sale.

Should be able to contact the Title company or whoever does the actual sale. But other than begging and pleading, if foreclosure dept of servicer computer says to the auction company computer to sell we are at their mercy.

That is not acceptable obviously but how to assure no accidental sales I do not know. That is why we need Congress to act to delay or stop foreclosure sales if home lived in and trying to get resolved.

The servicer is not "SUPPOSE" To do a sale while being considerd for HAMP or all other options. But sometimes they do and not much we nor lawyers can do.

[samtall]

also should I get it under 90 days....

[davephx]

They can foreclose at 30 days but most wait 90.