On March 24, 2010, Making Home Affordable issued a Supplemental Directive which states that a servicer may not make a foreclosure referral or conduct a foreclosure sale unless one of the following five circumstances exists:
The servicer evaluates the borrower for HAMP and determines that the borrower is ineligible; or
The borrower fails to make the monthly trial period payments after being offered a trial period plan when the payment is due that month; or
The servicer makes “reasonable effort" to solicit the borrower to supply required information to the servicer and the delinquent borrower fails to respond within a specified timeframe; or
The servicer makes “reasonable effort" to solicit the borrower without establishing “right party contact"; or
The borrower or co-borrower expresses disinterest in pursuing a HAMP modification and the servicer’s servicing system reflects such statement.
For details, see Supplemental Directive 10-02. If you are a Utah homeowner struggling to make your first lien mortgage payment or feel like your lender or servicer has not worked with you on a loan modification, call one of PEARSON & B UTLER's Utah attorneys for bankruptcy for assistance. Our Utah lawyers are happy to offer prospective clients a free consultation and help stop foreclosure.