How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask LawTalk Your Own Question

LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27887
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
Type Your Real Estate Law Question Here...
LawTalk is online now
A new question is answered every 9 seconds

I am in Illinois and have been denied a HAMP modification because

Customer Question

I am in Illinois and have been denied a HAMP modification because my income is too high. I have read that there is a 30 day period after a HAMP denial during which a lender cannot refer my mortgage to foreclosure. The rep I spoke to did not believe this was true. I need to know because if I have thirty days I can have the funds to catch up on past due payments. I am 5 months behind the bank has continued to accept regular mortgage payments.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.
Good morning,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

If you are going to have the funds to catch up on the mortgage arrears in the next 30 to 60 days, then you don't need to worry about whether the lender moves forward with the foreclosure process---because you are at no risk of losing the property.

However, as the HAMP modification was already denied, that ends any obligation of the lender to wait in order to move forward with the foreclosure. The freeze on the foreclosure process only applies to the time that the lender is evaluating your HAMP application. If the application has been denied, then there is no longer an evaluation in progress.

The foreclosure process is quite lengthy in IL, and you must first be sued by the lender with a complaint to Foreclose the Mortgage, it then must be served on you and you have 30 days to file an answer the complaint. Even if you ignored the complaint and did nothing, it would be another 30 days or so until the court issued a default judgment, and even after that, as long as you still reside in the home, you have an additional 90 days to redeem the property by paying the amount owed. The property can only be sold after the 90 day redemption period.

So, presuming that the lender has not even filed suit yet, you are likely at least 6 months or more from the property being sold.

If you truly will have the funds to pay the arrears in the next 30 days, then contact the lender, tell them this and where the funds are coming from, and they will likely halt any foreclosure process that they might otherwise plan.

You may reply back to me again, using the Reply to Expert link, if you have additional questions.

I wish you the best in your future,

Doug
Customer: replied 1 year ago.

Thank you. I was just concerned because once they file a notice of default with the courts, I will then be responsible for other fees and I really would like to avoid this. It also makes me a bit nervous. I am aware of the freeze on the foreclosure process during review. I was just confused because in the information letter that the bank mailed to me explaining the HAMP process it stated that if you are not approved, you will receive a letter stating this and that you have 30 days after the non-approval notice during which time they cannot foreclose. I think this is in case you want to appeal the decision. I have also read this in other descriptions of the HAMP process. When I asked the loss mitigation rep she was unaware of this even though it is stated on the correspondence that they provided. She said she didn't see that any such letter was sent even though I have a copy that I received in my original packet. She also said that I am not entitled to appeal, although she couldn't give me reason. I wasn't planning on appealing unless I thought it would give me another couple of weeks to pay them the arrears. I submitted financial documents showing them I can make the payments, but they said nothing can be put on hold and they do not make repayment arrangements when you are more than 2 payments behind. So, I received my denial last week, do I have any expectation that I might actually have a few weeks before any further action is taken?

Expert:  LawTalk replied 1 year ago.
Good afternoon,

Thank you for the additional information and questions. I'll do my best to respond to the new issues you have.

You wrote: I was just confused because in the information letter that the bank mailed to me explaining the HAMP process it stated that if you are not approved, you will receive a letter stating this and that you have 30 days after the non-approval notice during which time they cannot foreclose. Ant that is a correct statement. I think that you may confuse the foreclosure process with the resulting foreclosure, which ends with the sale of the property. The law does not prevent the lender from going forward with the process during the time that they are considering the modification, or after a denial. It does however prevent the actual finalization of the foreclosure whereby you lose the home without recourse.

As for a formal appeal process, while the US Treasury Department claims to be working on one, there is not a formal appeals process at the moment when a HAMP modification is denied. Again, this may be confused with the appeal process that does exist for people who have gone through the 3 month trial payment period successfully and then have been denied the modification. In that circumstance, there is an appeal process.

The good news is that mortgage servicers are routinely slow to move forward with the different stages of the foreclosure process and there is a good chance that there will not be any legal fees or filing fees in the next 30 days. However, I would still suggest that you contact the servicer and explain that you expect to be able to fully catch up in the next 30 days---and they may well halt all action based on such an agreement, giving you the time to make good on your proposal.

You may reply back to me again, using the Reply to Expert link, if you have additional questions.

I wish you the best in your future,

Doug

.
Expert:  LawTalk replied 1 year ago.
Good evening,

I wanted to thank you for using JustAnswer, and to inquire whether my answer to you was helpful to your understanding of the law, as regards XXXX XXXXXXXX.

Is there anything else that I can assist you with, please feel free to ask. If you do not require further legal information at this time, please feel free to bookmark my profile so you can request me when you do have another question. Here is a link to my profile: http://www.justanswer.com/law/expert-lawtalk/

Thank you very much and take care.

Doug

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.
 
 
 

Related Real Estate Law Questions