- Will submitting a loan modification application halt foreclosure?
- Can my lender move forward with foreclosure if I am being reviewed for loan modification?
- Is it too late to apply for loan modification if I have received a foreclosure notice?
- What constitutes a complete application?
- Why is my lender telling me my application is incomplete?
- If I got a modification and my loan is sold, does the new lender have to honor the modification?
Will submitting a loan modification application halt foreclosure?
Yes. If you have submitted a complete loan modification application, your lender cannot apply for a final judgement or foreclosure or conduct a sheriff sale.
Can my lender move forward with foreclosure if I am being reviewed for loan modification?
No. Your mortgage lender cannot issue a foreclosure complaint or apply for a final judgement of foreclosure or conduct a sheriff sale if your loan modification application is under review. Unfortunately, this is a common occurrence called dual tracking, and it is important to seek experienced legal counsel right away to stop them. A Home Owner should not have to use resources to fight a foreclosure while they are trying to obtain a loan modification.
Is it too late to apply for loan modification if I have received a foreclosure notice?
No. Federal law says that if you have not been reviewed for a modification since January 10, 2014, if a complete loan modification application is submitted prior to Final Judgment, the lender must not apply for Final Judgment until the application is reviewed and the Home Owner has the chance to appeal any decision. If a complete loan modification application is submitted at least 38 days prior to the Sheriff Sale, the lender must adjourn the sale and review the application and the Home Owner should receive the chance to appeal any decision. In New Jersey, a Home Owner has the right to two (2) adjournments of the sale and each adjournment is for up to 30 days, so a Home Owner can adjourn a Sheriff sale for a total of 60 days. Therefore, a Home Owner can submit a complete modification application ten (10) days prior to the sale and then use the adjournments to adjourn the sale for 60 days, and the lender must review the application because there will be 38 days between the time of the application and sale.
What constitutes a complete application?
This is a common source of confusion as lenders will continually say the application is incomplete and more documents are needed. The best advice is to have an experienced New Jersey attorney prepare and submit the application to be sure everything needed is included. An experienced attorney can issue Requests for Information to confirm the application is complete and Notices of Error under the federal regulations if the lender improperly claims the application is incomplete. If a complete application is not reviewed as required, it is possible to file a Federal Complaint against the servicer and have them pay damages and attorney fees.
Why is my lender telling me my application is incomplete?
There can be many reasons why the lender continues to ask for irrelevant information or tell you that your application is not complete. If the lender is preventing you from obtaining a modification, this is a serious violation. Contact us today if your lender is attempting to block your application.
If I got a modification and my loan is sold, does the new lender have to honor the modification?
A new lender MUST honor your modification. If your loan is sold or the servicing is transferred and the new lender will not honor the modification, this is a serious violation and you should seek assistance from an experienced New Jersey Attorney.
Contact Ira Metrick today to discuss your options when your new lender won’t honor your modification or if you are facing Final Judgment or a Sheriff Sale. In addition to defending the foreclosure, we have the resources to conduct an analysis to identify what loan modification programs are available to our clients; whether our clients will be approved for the modification; and we can give our clients an estimate of the modified monthly payment. We also offer aggressive loan modification representation to monitor your lender’s’ compliance with the new federal rules.
