I Was Approved for a Loan Modification but my Lender Still Continues with Foreclosure
I was approved on Aug 25,2010 for a modification. My lenders attorney served me with a foreclosure summons on Sept 1,2010. I did not get the modified documents until Sept 13,2010. I signed and returned them on Sept 16,2010 along with my first month modified payment. Their attorney continued to send me foreclosure notices up until Sept 13,2010. Do I have to go to court to stop this foreclosure process?Mortgage Loan Modification Answer:
There seems to be an obvious disconnect with the communication between your lender's loan modification department and their foreclosure legal team. It's not a surprise since this has become a common occurrence inside banks ever since the foreclosure crisis started.
If you haven't already done so, please forward copies of the finalized loan modification agreement that you've signed, plus a copy of your check for the first modified payment to the foreclosure lawyer.
Insist that the representative assigned to you from the loan modification department notify the legal department of the modified status of your loan, and get everything in writing. Then double check with the foreclosure lawyer to confirm that the foreclosure has been stopped or canceled.
You cannot afford this type of miscommunication by your lender, especially since you are already at the finish line of your loan modification.
Even if you can prove that your loan was modified prior to a foreclosure, the hassle of having to reverse such a heinous mistake by your bank, if they do in fact foreclose by mistake, that it would be worth doing all you can to prevent such a mistake from happening.
You have the most at stake, and unfortunately, you have to be the most vigilant about making sure the bank reps are doing their jobs. At the end of the day, it's your house on the line, not theirs.
All the best to you. Please come back and let us know how everything turned out.