Stop Foreclosure Answer

Many times I have commented on how poorly mortgage companies are handling the applications for loan modifications for people facing foreclosure.  Here is a new one.

Arizona Couple’s Home Wrongfully Sold

Recently a couple in Phoenix, Arizona came home to find a notice on their door.  The notice said that they had five days to vacate their property.  The sale of their home in the foreclosure had been finalized.

The only problem was they had been given a trial loan modification.  After they were given it, they had made all three of the mortgage payments required by the modification on time.  They were waiting for notification that their trial modification was being converted to a permanent one.

The Notice of the Sale Blindsided Them

They contacted their mortgage company, JP Morgan Chase who checked their records.  The company found that a mistake had been made.  The foreclosure process had not stopped when the trial loan modification started.  It continued on and their home was sold in error.  Representatives from JP Morgan Chase started to work on their error.  However as of early November the couple had not gotten their home back.

Can you believe that?  This occurred because the people in the loss mitigation department did not communicate adequately with their legal department where they were at on the loan modification.

Just imagine the undue mental anguish this couple experienced. Falling behind on mortgage payments causes anxiety for anyone.  Being notified by your mortgage company that they are starting the foreclosure process increases the anxiety.  Then you apply for a trial loan modification and it takes forever for your mortgage company to approve it.

You are notified that your application for that trial loan modification is approved. At that point you breathe a big sigh of relief.   You feel that you have saved your home and you make the required payments on time.  You are at the last step – waiting for approval for the permanent modification.  Right then

Your Mortgage Company Pulls the Rug Out From Under You

JP Morgan Chase has seriously wronged this couple.  They have added to their anxiety level.  They should be penalized for what occurred.  In addition to restoring their home to them they should have to pay a substantial amount of money to the couple and pay a fine on top of that.

The Process Needs to Be Changed  

Ever since the start of the Making Home Affordable Modification Program, mortgage companies have been allowed to act on their own.  Many continue the foreclosure process while they are processing applications for trial loan modifications.  They normally do not stop the foreclosure process until a trial loan modification is approved.  That is wrong.

Mortgage companies should be required to suspend the foreclosure process at the time they receive the application for the trial loan modification.  They should only be allowed to resume it if the modification is denied.  If the companies were processing the applications as they were supposed to, they would not be losing much time by doing this.

Any mortgage company which fails to do this should have to pay a sizable penalty.

I don’t know if this Phoenix couple was represented by a lawyer or an expert in loan modifications.  Instances like this clearly demonstrate how valuable it is to have someone represent you.

People facing foreclosure also need to understand the process and the steps they can take to save their homes.  Anyone who understands the process would know their rights and what they could do in a situation like this.  My EBook has much information on steps people can take to save their homes from foreclosure.  You can get more information on it by clicking Stop Foreclosure. 

Much Success,

Mark Elkins