It is, unfortunately, very common for lenders to simply foreclose at the conclusion of a temporary loan modification (trial loan modification), or worse, during the trial loan modification or temporary loan modification…while payments are current. With lenders having greater bargaining power and resources, they frequently roll over homeowners leaving borrowers with little recourse other than suing the lender for this unethical and shameful behavior.
Temporary Loan Modification: A Prelude to Foreclosure
Although they would never admit to it, it certainly seems like many lenders use the temporary loan modification or trial loan modification process to squeeze every last dollar from homeowners before they inevitably foreclose anyway. Generally, the temporary loan modification doesn’t contain any promises or representations as to what will happen after the temporary payments, or trial loan modification payments, are completed. All too often, lenders take this opportunity to simply collect money for a number of months (while the foreclosure process marches forward), and at the end of that time frame, simply tell the homeowner they didn’t qualify for a permanent loan modification, and foreclose anyway.
Foreclosure After a Temporary Loan Modification
If the lender does choose to foreclose on your property after a temporary loan modification, or trial loan modification, there may be some litigation options for you. This type of misleading use of the loan modification process is not what Congress and the government intended when it enacted the HAMP regulations. There are a handful of firms that will take on these types of mortgage litigation cases, and public opinion is shifting in favor of homeowners. Judges and juries are realizing homeowners are often not the problem, lenders themselves are the real cause of many foreclosures, foreclosures that could have been avoided in many cases. Trial loan modifications, or temporary loan modifications are something to be cautious of, not always bad, but certainly something to be careful with.
Loan Modification Litigation Attorneys
Even if you have been approved for a temporary loan modification, or trial loan modification, you may still find your property going to foreclosure. McFarlin LLP attorneys handle all aspects of Mortgage Litigation and loan modifications for borrowers in Irvine, Los Angeles, Anaheim, Huntington Beach, Orange, Lake Forest, Fullerton, Laguna Niguel, Aliso Viejo and throughout California. Our attorneys are available to provide you with honest reliable advice at our Irvine office or over the phone. With a matter as important as loan modification and foreclosure, it is a very good idea to consider hiring a qualified California loan modification and mortgage litigation attorney to represent you and protect your interests.