Tuesday, March 06, 2012
It's a typical annoyance talked about by struggling property owners: They submit an application for a mortgage modification and at the exact same time their lender proceeds the actions for a foreclosure. Often, while homeowners awaits for a decision on mortgage modifications or make trial mortgage payments, the lender goes through with the foreclosure process.
Seriously to late for millions of homeowners, Federal regulators stepped in, demanding lenders to stop the "dual track" process, stating foreclosure process must halt once a property owners are accepted for a trial or permanent mortgage modification.
But don't expect things to happen instantly. Lenders have 120 days from the April 13 order date to put into practice the new method.
SB729, a pending California bill, will require lenders to stop foreclosure proceedings as soon as a people submit an application for a mortgage modification. It also necessitates lenders to fulfill numerous notice requirements and compose clear denial correspondence when needed. The Bills author intent is to prevent pointless and avoidable foreclosures.