Background: Owner occupied fourplex in Los Angeles (one unit)
purchased 2006 for $991,000
1st - roughly 750k for 7.5%
2nd- roughly 150k for 9.5%
Monthly payment (mortgage only): $6800
another $1600 for prop tax, ins, maintenance

the twist: this property is owned by 2 single women and a married couple (TIC) - only one unit is owner occupied, the rest are rentals.

Basically, we purchased and then remodeled this 80-year old building with the intention of operating in the red for some time and then refinancing. We got to the point where we were spending $2000/month out of pocket to cover expenses (property tax, mortgage, maintenance, utilities) and facing some costly repairs (roughly $50,000 that are not immediately necessary but required soon.)

At that point, we decided that we could not go on with the investment and consulted lawyers to help us attempt to get a loan mod. Because of our strange situation, many lawyers said they couldn't help us. Eventually, I got a recommendation for a firm through a friend and met with one of the associates and hired him. (However, I remain skeptical about his services... )

We stopped paying in February of 2012 and submitted our packet to ASC at the end of the month.
We soon began to receive phone calls and letters requesting contact. At the advice of our attorney, we did not contact them and left it to him to be our point of contact. Eventually the calls stopped.

Over the next few months, our attorney requested more documents - mainly pay stubs and bank statements - to send to ASC. But we never received any letters that our documents had been received - only letters requesting us contact ASC with information that we have supposedly already submitted.

On June 26, I received the official NOD dated June 8. I have 90 days to dispute this before the scheduling of a foreclosure sale.

Our lawyer contacted our point person - Tenisha Tignor - who, according to him, requested more documents to submit to the underwriter.

I have a few questions about this. Why have we not received any confirmation that our documents are being reviewed? Should I expect to receive that kind of confirmation? (Ultimately, I am unsure as to whether or not I should trust my lawyer when he says he is contacting the bank. The name Tenisha Tignor has appeared on the correspondence from ASC - letters which I have scanned and forwarded to him.)

Also, now that we are clearly in the process of foreclosure, is it possible that a sale could be scheduled even though our loan is in review for modification? How do I confirm that our loan is in review for modification? Our lawyer claims Tenisha said it is in the hands of the underwriter. AND if a lender/servicer is required to give us some kind of answer within 30 days of receiving the requested information - but they continue to ask for more information - when does that 30 day clock get set? Is it possible they could continue to request information therefore not being held to the 30-day limit while simultaneously setting up a foreclosure sale?

I have recently seen similar properties in my neighborhood - multi-family units that sold for the high 900's a few years ago - sold in foreclosure auction for mid 400's. (which is, btw, a great deal in this neighborhood which can command higher end rents at the right building)

I am unsure on how to proceed... do I leave it in my lawyer's hopefully capable hands? Should I, at some point, get in touch with the lender on my own? I would love to avoid a foreclosure sale as there are many scenarios in which a basic rate reduction would allow us to keep this building.

But I have read a bunch of stories on this site (amazing site, btw) about the importance of constant contact.

I'm just not sure if it is possible to increase my chances of a favorable outcome and if so will my lawyer be enough or should I get in on the conversation?

Anyone have any insight to this (kinda strange) case?