Hi, thank you for asking your question today. The other Experts and I are working on your answer. By the way, it would help us to know:Has a foreclosure complaint been filed with the Court ?
Are you currently current on your mortgage?
Did you receive a loan Modification for a period of time e.g. 4 months ?
What State is the property in ?
Thank you again for trusting us with your problem. Please reply as soon as possible so that we can finish answering your question.
Ok so what your agent is telling you in a convoluted manner is that a foreclosure proceeding is usually initiated by a lender after some period of time of default. In many cases the foreclosure is initiated when you have missed 3 payments. After foreclosure is initiated you have to deal with lawyers for the lender. DIL and other strategies may still be available, but you have more parties and costs involved.
After the missed third payment the lender starts the foreclosure process which includes notification, and ultimately a filing of a foreclosure complaint. It may be the lender has a policy of not allowing a DIL after foreclosure complaint is filed.
As many consumers find out the legal part of foreclosure dealing with courts and lawyers is totally independent of the loss mitigation workout part with the lender. I have seen my share of individuals lose their home while they thought a modification was in the works.
Foreclosure on abandoned properties can occur more quickly because of the risk of damage. Lenders are more nervous about abandoned property because of vandalism.
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