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I am current on repayment program but mortgage company hasn't stopped foreclosure process. Is this legal?

Mesa, AZ |

I entered into a repayment program in Sept '11 with the creditors that my mortgage company hired. I have been making all my payment on time, however I have received forty (40) letters of foreclosure and sale, a notice was posted on my door and I am being solicited left and right. The creditor company says when I pay the 2nd to last payment (which is the April payment) they can stop foreclosure proceedings. However the repayment contract states that "foreclosure proceedings will stop" as of the contract date, but they have not. What happens if proceedings aren't stopped in time? The supposed sale date of my home is May 4th, but the last payment date is May 15th!! Is this legal??

I was denied the modification and this was a payment plan to catch up on the debt and get me current. Then I would be making my payments directly to my mortgage company again instead of through the collection agency. I have done everything correct and I could still loose my home after paying back all the money?

Attorney Answers 3

  1. Has your lender signed the modification agreement, or just you?

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  2. Is it legal, yes. Ethical, well, you did not ask that question.

    It sounds as though you are trying to get a loan modification and are approaching the tail end of the trial plan payments. It is quite common that the foreclosure continues along with this plan. If you miss a payment, they foreclose. Even if you make all your payments as agreed, the lender is likely going to ask you to re-submit your financials again to re-evaluate your situation for a permanent modification. During this time, they will likely postpone your foreclosure 30 days at a time, so that you are essentially living under the gun.

    Without reviewing your modification documents, it is impossible for me to make any real prediction of how your case will pan out. I can tell you that in my experience, most people in situations like yours eventually lose the home. I would encourage you to speak with a good real estate and short sale attorney to make sure you understand your options and make the best decision. Arizona does have good anti-deficiency protection if you qualify.

  3. It is important to consult with a skilled debt / bankruptcy lawyer in this type of situation. There is not a cookie cutter answer to your question. If you visited my office for a free consultation we would discuss all your options There are simply too many issues involved. I hope this helps you understand why seeing a lawyer in these types of situations is critical.

    The AZ lawyers who have responded to you here on AVVO, including me, can all probably help you. So, call 2 or 3 of us and hire whomever you're most comfortable with. We offer a free consult.

    I won't get into details here - but my law partner has written a free bankruptcy e-book you might want to download from this link:

    Mr. Greeves is licensed to practice law throughout the state of Arizona. His office is in Tempe. His phone number is 480-345-8100 or his email address is His website is

    Mr. Greeves is licensed to practice law throughout the state of Arizona. His office is in Tempe. He is authorized to handle IRS matters throughout the United States. His phone number is 480-345-8100 or his email address is His website is Please note that this answer does not constitute legal advice, and should not be relied upon. Each state has different laws, every situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

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