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

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.

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Filed under: Foreclosure
Attorney answers 3


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.


Consult local foreclosure counsel.


Additionally, dual tracking is illegal under the HAMP guidelines.

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