New Federal Guidelines Prohibit Dual Tracking on Foreclosures
New guidelines stipulating that banks and servicer's are prohibited from "Dual Tracking" on foreclosures as well as other guidelines giving homeowners a fighting chance to avoid a judicial foreclosure in Illinois. CNNMoney published an article breaking down these new rules and guidelines implemented by the Consumer Financial Protection Bureau. These new guidelines are not specific to only Illinois but for the purposes of this article, I am going to concentrate on Illinois since different states have different laws and are affected differently.
CFPB Director Richard Cordray says "the new rules are aimed at trying to prevent “unnecessary foreclosures” as well as “ensure fair treatment for all borrowers and establish strong protections for those struggling to save their homes.”
For those of you that do not know what "Dual Tracking" is, this is when a servicer or bank processes a loan modification, short sale or some other alternative to foreclosure at the same time they process a foreclosure. In many cases this has led to the servicer foreclosing on the home prior to the completion of the foreclosure alternative and some have reported with little to no notice to the homeowner. This is unfair to homeowners who are being led to believe they have an opportunity to save their home from a foreclosure specifically by their servicer. As Director of the CFPB has stated, perhaps these guidelines will help minimize this from happening.
I am thankful that nothing like this has happened to my clients but I tend to be very conscious of the dates in relation to my clients properties in order to prevent a foreclosure on their properties. I am very pleased to see that these new rules will give my clients and all homeowners peace of mind that the will have a fair opportunity to resolve the situation.
According to these new guidelines a homeowner will have more time to consider their alternatives, have direct access to their servicer, mortgage statements will be published more clearly so that it is better understood by homeowners, restrictions on timelines for foreclosures as well as some other rules that are applicable. To read more about these visit "Federal Laws Prohibit Dual Tracking".
If you would like more specific information on short sales and your options and alternatives to a judicial foreclosure in Illinois here are some direct links to help educate you and guide you in your efforts. Reach out to me if you would like to discuss at 708-620-4460.
Benefits of a Short Sale in Illinois
Understanding Illinois Foreclosure Liabilities
Illinois Tax Liabilities on Foreclosures & Short Sales
Other Options and Alternatives to Foreclosure
Keller Williams Preferred Realty
Illinois Real Estate Broker | Realtor®
Source: " New rules aim to protect homeowners from foreclosure ," CNNMoney (Jan. 17, 2013