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 Attyadvisor Your Own Question
Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6035
Experience:  28 years of experience in General Practice, Real Estate Law and Estate Law.
68197583
Type Your Real Estate Law Question Here...
Attyadvisor is online now
A new question is answered every 9 seconds

I'm currently working with a bank on a modification to

Customer Question

I'm currently working with a bank on a modification to my loan. Is it possible they will still foreclose on my house?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 1 year ago.

Welcome and thank you for using JA. It will be my pleasure to assist you, Give me one moment to provide you with the applicable law. Is this the same bank/lender that is foreclosing? http://www.ncdoj.gov/getdoc/0322fd68-213f-4cb0-9d14-98c306367433/Foreclosure.aspx

Expert:  Attyadvisor replied 1 year ago.

Under the old laws a loan modification did not stop a foreclosure under the new laws will stop the foreclosure

“Delay foreclosures in North Carolina with a loan modification.

Two new regulations were created in North Carolina to assist homeowners with foreclosure filings. State regulators have created new laws and regulations that resulted in the creation of a rule that states once a homeowner asks their bank or lender for a loan modification, any foreclosure filings that the borrower may be involved with or facing must be delayed or stopped while the loan modification is being reviewed.

This is a major improvement in the current process. In the past, banks and lenders that were pursuing a foreclosure action against a homeowner did not have to stop the process. In the past they were able to pursue a foreclosure against the home as they worked with the borrower. That process put homeowners up against the clock, created additional stress, and would more than likely cause the homeowner to lose their home.

Regulation to delay foreclosures

So this new regulation will ensure that homeowners have time to negotiate with their lender in order to find a solution that works for all parties. The state government of North Carolina created this new rule as they believe that the mortgage industry has failed to prevent as many foreclosures across the state and the nation as they could have. They believe that that there are some significant flaws in the system when it comes to loan modifications. The new laws and regulations that have been adopted will help homeowners have a better chance of avoiding foreclosure when they have the ability to stay in the home over the long term. Refer to The Consumer Economic Protection Act, and this law will provide the family in North Carolina with up to 60 additional days to work with the bank or lender.

To learn more about the regulation, dial(###) ###-#### ***** is the North Carolina Housing Finance Agency. the state’s foreclosure hotline, can also provide more information.

http://www.needhelppayingbills.com/html/stop_foreclosure_with_loan_mod.html

The North Carolina Department of Justice also provides assistance

“If you get behind on your mortgage payments, you should contact with your lender immediately. Remember, most banks and mortgage lenders do not want to foreclose because they lose money on foreclosure sales. Even if you are delinquent, many lenders will be willing to offer a temporary forbearance or a loan modification to avoid foreclosure.

Free help dealing with foreclosure is available from a pair of programs administered by the NC Housing Finance Agency. The Foreclosure Prevention Fund assists homeowners who lose their jobs or experience certain temporary financial hardships. The Foreclosure Prevention Project can help homeowners who are facing foreclosure for any reason. This program can connect homeowners with free housing counseling, help them work with their mortgage servicer, and provide access to legal services for homeowners with lower incomes. Both programs can be reached at 1-***-***-****.

We Can Help

To report a foreclosure scam, file a complaint online or call toll free within North Carolina at 1-877-5-NO-SCAM.”

http://www.ncdoj.gov/getdoc/0322fd68-213f-4cb0-9d14-98c306367433/Foreclosure.aspx

Further.

Foreclosure Must Be Put on Hold if You Request Loss Mitigation

Under Rule 702 of the North Carolina mortgage lending rules, if the borrower requests loss mitigation, a mortgage servicer must:

  • acknowledge the request no later than ten business days after the request
  • respond to the request no later than 30 business days after receiving all necessary information from the borrower, and
  • refrain from initiating or furthering a foreclosure proceeding while the loss mitigation request is pending.

However, the foreclosure does not have to be postponed if one of the below conditions applies.

  • The borrower failed to comply with the terms of a loss mitigation plan within the previous 12 months, if the loss mitigation plan was pursuant to a federal or state foreclosure prevention program (including HAMP) or reduced the monthly payment of the loan by 6% from the scheduled monthly payment and resulted in a monthly payment of principal, interest, taxes, and insurance of less that 31% of the borrower’s household income.
  • The servicer has provided a final response regarding a loss mitigation request within the last 12 months and reasonably believes that the current loss mitigation request was not made in good faith.
  • The borrower has failed to comply with a Chapter 13 bankruptcy repayment plan or has had any bankruptcy proceedings dismissed for abuse of process within the last 12 months.
  • The request for assistance comes after the time to appeal the foreclosure order (that is, ten days after the foreclosure hearing) has expired.
  • Delaying the foreclosure would violate the terms of the servicing contract, if the contract was entered into before October 1, 2009.

http://www.nolo.com/legal-encyclopedia/north-carolina-foreclosure-laws-procedures.html

The Consumer Financial Protection Bureau can also assist you of you run into any issues with the lender at http://www.consumerfinance.gov/complaint/

I hope the information I provided was helpful. Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you. If you would be kind enough to rate my service positively so I may receive credit for my work. Thank you for using JA!

Expert:  Attyadvisor replied 1 year ago.

I wanted to follow up with you to see if the information I provided was helpful?

I hope the information I provided was helpful. Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you. If you would be kind enough to rate my service positively so I may receive credit for my work. Thank you for using JA!

Related Real Estate Law Questions