Do you know what Loan Modification versus Dual Tracking in Phoenix AZ means? You have been trying for weeks to get a confirmation from your lender that you have been accepted into the 3 payment trial period for loan modification. Then you come home one day and there is a certified letter waiting for you from a legal firm informing you that your home is going to be foreclosed and auctioned off at the court house steps in 91 days. You ask, how can that be, you have been talking with the bank about getting loan modification?
Either one of two things is happening; you are not in "active loan modification review" or your lender is breaking the law. There is a ruling that prohibits Dual Tracking which means a servicer (your lender) cannot be simultaneously evaluating you for loan modification or other loss mitigation alternatives while it prepares to foreclose on your home.
Now you need to be real careful with the term "active loan modification review", it does not mean you are having discussions with your bank's single point of contact or you are faxing in docs for the 5th time. No, it means you have submitted a complete application for loss mitigation more than 37 days before the foreclosure sale. Once the review has been completed then the Servicer must (1) inform you that you are not eligible for any loss mitigation options, (2) you reject all of the loss mitigation options, or (3) you fail to comply with the terms of a loss mitigation option. If in fact one of these 3 options exists then your Servicer has the right to move forward with the Foreclosure Sale.
The most common form of mitigation is when the bank offers you a 3 payment trail period and at the end of that 3 month period, assuming you have made the 3 payments and have not been late, then your lender will have a final review of your file and see if you have remained in compliance and are still eligible for a loan modification. While you are in the 3 payment trial period and you are complying with terms and conditions of the agreement the Servicer cannot legally foreclose on your home.
It is very easy to understand why there is confusion about Loan Modification versus Dual Tracking in Phoenix AZ. with all of the changing rules and regulations. That is why I highly encourage one to seek out professional assistance and when choosing a professional you want to make sure they are well schooled in loan modification and are licensed to sell real estate within your area.
One of the areas that Jim Miner of Miner, Noh and Associates specializes in is Loan Modification at azhomehelp. The best number to use for additional questions is 602-345-0433.
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