Is the clock ticking to foreclosure date "dual course of action"?

Asked over 1 year ago - Rancho Cordova, CA

As soon as my friend entered into loan modification, he received notice that the bank had started foreclosure proceedings. In California, as of January 1, taking a dual course of action is illegal. Logically, this would mean any clock that started "ticking" would be stopped (as in a time out) until the loan modification was completed, at which time, if unapproved, it would start ticking again. Is this how it works? If not, I think the legislators need to add this provision to the new law.

Attorney answers (3)

  1. Ekaterina Kashlinsky

    Contributor Level 9

    4

    Lawyers agree

    Answered . The new law is supposed to restrict "dual tracking." What this means is that, after you apply for a loan modification and while your loan modification application is being reviewed, the bank cannot put your loan on a "track" to foreclosure. What caused a lot of problems is that banks would foreclose homes while reviewing loan modification requests. The new law against "dual tracking" is taking effect on January 1, 2013. Your question concerns a different issue--foreclosure notice after the loan modification was approved. Banks are super slow, and it takes a long time to get things done, like implementing the loan modification and putting it into the computer system. It seems that the bank hasn't told its foreclosure department that the loan modification was approved. Your friend should call the bank and sort this situation out.

  2. John P Fazzio III

    Pro

    Contributor Level 16

    2

    Lawyers agree

    Answered . Consult local foreclosure counsel.

  3. Dmitry David Balannik

    Contributor Level 6

    Answered . Additionally, dual tracking is illegal under the HAMP guidelines.

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