There have been cases where homeowners who have attempted to find a home loan modification which will be beneficial for their mortgage predicament have also stated they have received documentation stating the financial institution which services their mortgage is pursuing foreclosure as well. While this may not be a very common problem among all homeowners, there are questions which have arisen from these circumstances where some homeowners who felt they were being considered for a modification were also in a position where it seemed their mortgage servicer was beginning foreclosure proceedings.
However, according to rules set in place by the federal Making Home Affordable modification program, servicers cannot refer a homeowner to foreclosure until a homeowner is said to be ineligible for the Making Home Affordable modification plan. Also, servicers may not complete a foreclosure sale if, again, homeowners have not been determined to be ineligible for the federal modification program.
Yet, there are also states which have similar rules in place to protect homeowners who are attempting to find a mortgage solution on their current home loan. However, there are still reports from some homeowners who have said they were being considered for a federal mortgage modification but also received notice that the bank was beginning foreclosure proceedings on their home. Understandably, this is incredibly troubling to homeowners who are attempting to find affordability in their mortgage payment, but are seemingly facing the loss of their home.
Despite the fact that rules from the Making Home Affordable Program protect homeowners from facing foreclosure before being determined ineligible for any modification, these troubles have arisen in some areas, but homeowners are being informed that if a proper modification application is submitted and homeowners are being considered by their servicer, a foreclosure should not be an immediate threat.
However, these rules against foreclosure are no guarantee as there are problems which remain between homeowners and servicers, not to mention within the modification program in general. Yet, there are resources which homeowners may consult if modification troubles like this arise as the HOPE Hotline and website are still available to offer counseling and guidance in the area of foreclosure prevention.