Traditional Loan Modification Offered Six Days Before Foreclosure

by Anonymous

I have spoken to someone finally that is willing to listen. They offered me a Traditional Loan Modification. I had been getting the run around but have finally spoken to someone who is willing to listen. I have 6 days before my foreclosure do you think they can get this processes going quickly? How long does it usually take to begin this traditional loan modification?

Mortgage Loan Modification Answer:

When you say "6 days before a foreclosure", I am assuming you have been offered a traditional loan modification by your lender six days before a scheduled auction or trustee sale, where they actually have instructed an auctioneer or a sheriff to conduct a public sale of your property.

If this is the case, then your lender would have automatically postponed the scheduled foreclosure sale as soon as they agreed to consider you for a traditional loan modification.

This action should have been done immediately by your lender. Please call the loss mitigation specialist whom you spoke with and confirm that this was the case.

Current law states that lenders are not allowed to finalize a foreclosure if your loan is going through the loan modification process, traditional or otherwise.

Please check the foreclosure laws in your state to see if a foreclosure trustee is in charge of facilitating your foreclosure. If so, give them a call, as well as your lender, and confirm that your foreclosure sale date has indeed been postponed.

For further explanation of the judicial and non-judicial foreclosure process, please go to How Does Foreclosure Work

It is rare that lenders cancel the foreclosure all together unless you have been approved for a loan modification and all the paperwork has been executed and finalized.

The normal course of action they take is to postpone the foreclosure sale date.

As for how long the traditional loan modification process takes? Unfortunately, it varies widely from one lender to another. Do your part in helping the process along by providing a complete package of documents requested by the lender.

Make sure you check for status frequently. I called to check on mine ever day when ours was in process.

Check for any news that may have come out in the media on how your lender is currently handling loan modifications.

Take a deep breath, visualize a positive outcome, and do what you can to help yourself through education on the loan modification process.

All the best to you. Please come back and let us know how it goes for you.