Lender shows compassion, pulls back HAFA short sale

When my former client did not qualify for loan modification under the HAMP program, he received a notice of trustee sale shortly after.

Even then, he continued to negotiate with his lender to explore other alternatives to avoid foreclosure. He was told that the only sensible option for him was to short sale his home. Obviously, it was not a difficult decision to make, given that there is really no other alternative left for him (aside, of course, from arranging to make the mortgage current).

So, as the homeowner and his wife were slowly trying to absorb the painful reality that they would soon be giving up their home, they received a call from their lender and were offered a different, more compassionate offer. Instead of a HAFA short sale, the lender decided to give them another chance to keep their home. A forbearance plan is being worked out, and a new loan modification will be considered once the homeowner gets employed.

For now, the foreclosure is put on hold. At the very least, this buys homeowners a little bit more time to figure out the direction they want to go. Whatever motivated the lender to do what they did, they made one family very happy! I do believe that behind the lenders stern policies are people who enforce it with a heart!

Thank you, One West Bank (aka IndyMac)!