Home loss by foreclosure during loan modifications has been on the rise. Mark Len (D-San Francisco) and Darrell Steinberg (D-Sacramento) have recently proposed new legislation that would forbid lenders from starting foreclosure proceedings against homeowners who have a loan modification request pending. A similar bill died last year. The bill, Senate Bill 729, would provide check and balances as briefly outlined in a press release from the Center for Responsible Lending, including but not limited to: (1) a “yes” or “no” from the lender to the homeowner on the loan modification before the lender begins foreclosure proceedings, (2) proof of ownership of the note by the lender at the time the lender records the default, (3) lifetime loan accounting from the servicer to the homeowner at the time of the notice of default, and (4) limited legal resources to the buyer.
To protect yourself and your home, this office strongly recommends that the homeowner and/or modification facilitator obtain the name and contact information of the person handing both the modification and the foreclosure and provide the same to all involved parties. Further, all communications from the homeowner and/or modification facilitator should be sent to both the loan modification and foreclosure department contacts by certified mail, return receipt requested. You need to create a paper trail to protect yourself.
Utilize the www.makinghomeaffordable.gov website for Home Affordable Modification Program (HAMP) forms and information. Also read helpful pamphlets, obtain contact information for lenders and watch informational videos. Home Affordable Foreclosure Alternatives (HAFA) information is also available.
For more information regarding Loan Modifications or Foreclosures or for specific questions, please contact our office:
Law Office of Howard L. Hibbard
http://hlhibbardattorney.com/contact-us
or call (650) 347-5010 for a free consultation
Lisa K. Kehe, Esq.
Our Chapter 7 BK filing has been discharged. On that BK one of our properties which is on foreclosure was included. We are short selling the property.. Both first and second lien holdlers approved the sale. We wanted to get a deficieny waiver but both lenders said the approval letter is all we are going to get. We are afraid that the lenders might go after us later on for the deficiency balance. We wanted to talk to an attorney who can help us understand what is written on the approval letters and advise us on whether to go thru the short sale or just have the property go into foreclosure because of the BK discharge. Thank you.