The Loan Mod and the Foreclosure Proceedings

Many consumers are attempting a loan modification to keep their home. They are having the same challenges Realtors were having in working with the banks on Short-Sales (SS).

One hand not necessarily knowing what the other is doing.

We Realtors have dealt with this many times, so in the last few years we learned very quickly that we, not the SS bank, had to keep track of what the foreclosure department was doing while we were navigating a SS for our clients.

This morning in the LA Times Real Estate section was a very good article about homeowners struggles with loan mods. Thinking they had stalled the foreclosure only to find them foreclosed upon when they had submitted their package two or three times and were waiting for another contact from the bank telling them they were missing yet another document.

Banks Foreclose While Homeowners Wait For Loan Mod

If one person reads this article, then one more person I have helped to stay in their home. It's a good article. Not necessarily a life saver, but remember that when you are attempting your one and only loan modification to save your home, us working Realtors have dealt with this over and over again.

Keep track of what is happening in all departments of your lender. Make sure that the Loan Modification department is getting what they need, no matter how frustrating. Always call them, don't wait for them to call you, to verify receipt. And, ALWAYS, keep track of what is happening in the Foreclosure department. 

Nothing could be worse than to get foreclosed on the same day you receive notice that you have been approved for the loan modification that saved your home.