cancel
Showing results for 
Search instead for 
Did you mean: 

loan mod to prevent/stall foreclosure

tag
SeanAndrews
Regular Contributor

loan mod to prevent/stall foreclosure

I was being foreclosed on and two weeks before the auction date, I contacted the bank to see what I could doto avoid a foreclosure, perhaps a short sale. They said they couldn't stop the foreclosure with a short sale because I didnt have the house on the market. They stated that if I were to apply for a loan mod, that would at least delay it or avoid it. I have done that, but in reality I do think i want to do a short sale and get out from under the debt. During this loan mod process should I contact a realtor and get the  house on the market, so that when they tell me I am denied, I will be able to go to Plan B, the short sale?

 

Message 1 of 7
6 REPLIES 6
ShanetheMortgageMan
Super Contributor

Re: loan mod to prevent/stall foreclosure

You really need an attorney to get accurate advice, but yes that sounds accurate that you'll need to have your home on the market, listed in short sale status, etc. and once that is done your real estate agent completes a short sale package and it begins to get processed. 

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 7
Lel
Moderator Emeritus

Re: loan mod to prevent/stall foreclosure

Did you accept the loan modification that was offered to you last year?

 

http://ficoforums.myfico.com/t5/Mortgage-Loans/so-much-for-HAMP/m-p/643937

 

 

As Shane mentioned, you should seek the advice of a real estate attorney with experience in this sort of situation.  You might also have to contact your lender, because I'm not certain that you can pursue both modification and short sale simultaneously.  Has the bank actually delayed your auction date?

Message 3 of 7
SeanAndrews
Regular Contributor

Re: loan mod to prevent/stall foreclosure

Yes they have delayed to foreclosure auction, and I just received two days ago the full HAMP application, where once again they are asking for a financial worksheet (this will be the third time), and then the tax transcript. I would just like to have the short sale option ready in the event they say I was denied, because then they will likley resume foreclosure. A tricky question on the HAMP application though - do I intend to keep the home. Why do they even ask this question? What happens if I say no, does that mean they toss the app away and deny it?

Message 4 of 7
SeanAndrews
Regular Contributor

Re: loan mod to prevent/stall foreclosure

I did not get approved for that HAMP two years ago, instead Wells basically re-aged my mortgage to a lovely 40 years and decreased my payment a few bucks. Basically they dod nothing for me except let me stay in the home and resume payments, otherwise they have made another fortune on me.,

Message 5 of 7
Lel
Moderator Emeritus

Re: loan mod to prevent/stall foreclosure


@SeanAndrews wrote:

Yes they have delayed to foreclosure auction, and I just received two days ago the full HAMP application, where once again they are asking for a financial worksheet (this will be the third time), and then the tax transcript. I would just like to have the short sale option ready in the event they say I was denied, because then they will likley resume foreclosure. A tricky question on the HAMP application though - do I intend to keep the home. Why do they even ask this question? What happens if I say no, does that mean they toss the app away and deny it?


This is sort of what I was alluding to when I mentioned the possible conflict between seeking a loan modification and a short sale at the same time.  If you list your home, the lender might conclude that you do not intend to keep it.  If so, then they may not think it is worth their effort to modify the loan.  So I think you might have to choose one option or the other.

 

The reason why I asked about the prior offer from WF is because lenders sometimes won't allow more that one modification.  If they changed the length of your loan, that would technically be considered a modification.

 

What was the previous reason for the denial of your HAMP requests?

Message 6 of 7
SeanAndrews
Regular Contributor

Re: loan mod to prevent/stall foreclosure

They didnt really tell me why, but that they could work something out on their end. (perhaps I am one example why they and BoA are in the spotlight for denying so many people in the past that were meant to receive HAMP benefits, yet they have no problem accepting the govt money).

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.