Foreclosure under HAMP
(Las Vegas, NV)
What can legally be done to stop foreclosure for someone who is pre-approved for HAMP and waiting on the HAMP invitation to arrive? Under the new HAMP directives effective 6/10 banks aren't allowed to foreclose until the borrower has been deemed ineligable for HAMP, but Bank of America is doing it anyway.
Mortgage Modification Answer:
You are right that lenders are not allowed to foreclose if you are being considered for a HAMP loan modification or any type of loan modification for that matter.
They can start the foreclosure process by filing a Notice of Default and eventually, even a Notice of Trustee Sale, but they cannot finalize the foreclosure by selling your home at an auction or sheriff's sale until you have been issued a formal denial of your loan modification application.
If the foreclosure process has gotten beyond the default period and already has a trustee or sheriff sale scheduled, what normally happens is the bank will keep on postponing the sale date until your loan modification application is either denied or approved -- at which time, the foreclosure is either finalized (property sold) or the foreclosure is cancelled.
In your case, I hope the latter is the outcome. Best of luck to you and your family.
Please come back and post your outcome so other visitors can benefit from your shared information.
All the best to you.