Mike
New York,#2Consumer Comment
Mon, March 02, 2009
When someone is delinqeunt on a home mortgage, there are several things that go on, all at the same time: 1. The servicer is going to file for foreclosure proceedings, whether or not they are currently working to complete a loan modification, repayment plan, short sale, or anything else. They do this because the investor/owner of the loan requires them to. End of story. 2. At the same time, the servicer should continually work to get you in to a loan modifciation (or something else!!!) through the entire process, all the way up until your home is sold at a foreclosure sale. BUT, at any time, once you are FULLY approved for a loan modificaiton (or something else), the foreclosure proceedings should STOP (you are at THAT TIME considered current and they cannot sell your home!!!). However, large companies are obviously not infallable. Servicers will likely assign the foreclosure process to an attorney in your state to have them complete the foreclosure process. When a workout option is approved, they send notice to the attorney to STOP FILING FOR FORECLOSURE. If that notification from the servicer to the attorney is delayed or slowed or forgotten in any way, the house may accidently get sold (yea, that part sucks). However, in these cases, the servicer should be responsible for re-obtaining the rights to the home (normally through voiding the sale). This entire process doesn't happen a lot, but ya, it does happen. Contact your servicer and, if their records show you were approved for a plan before the sale, make sure they are working to void the foreclosure sale.