There are times when mortgage companies work with homeowners to avoid foreclosure . For example, by trying to negotiate a mortgage modification. However, sometimes at the same time that the mortgage companies are working with the homeowners, the company is also starting the foreclosure process. If the homeowner and mortgage company aren’t able to enter into an agreement, then the mortgage company puts the home into foreclosure right away. Most times, the homeowner is not even aware that the mortgage company is starting the foreclosure process behind their backs. This is called dual tracking.
Dual tracking used to be much more common. Fortunately, the Consumer Financial Protection Bureau has limited this practice. If a homeowner has submitted a complete mortgage modification application, then the mortgage company cannot start the foreclosure process. Further, the mortgage company cannot start the foreclosure process until the mortgage is more than 120 days past due. This is to give the homeowners time to submit an application for a mortgage modification, or another similar method to avoid foreclosure.
The Mortgage Modification Center
If you have any questions about mortgage modifications, please reach out to the Mortgage Modification Center at (401) 467-7998. Attorney John S. Simonian offers a free initial consultation, and has helped numerous families stay in their homes and avoid foreclosure.
Attorney John S. Simonian is a Rhode Island and Massachusetts lawyer who specializes in bankruptcy law and mortgage modifications. Click here to learn more about Attorney Simonian.