TX

P:)

First let me say for the benefit of all reading this response… foreclosure laws vary by state and if you find yourself facing a foreclosure you should educate yourself on the laws and, even better, consult an attorney knowledgeable with your state’s foreclosure procedure. That advice goes for you too, Alicia. Okay, here goes.

Yes a loan modification is still possible. That however somewhat depends on your lender’s willingness to work with you after a Notice of Foreclosure (NOD). The good thing is you’ve not received a Notice of Sale (NOS), but you need to act quickly.

Being 3 months behind doesn’t disqualify you from a loan modification, and in fact it might make you a better candidate. If you can afford to make a monthly payment, albeit a reduced one, your lender might be willing to stop the foreclosure action and modify your loan.

Believe it or not, the lender does not want to foreclose and take your house. They really want you to pay, so if they can get you to pay an amount that is less but reasonable, they might go for it. What you need to do — IMMEDIATELY — is contact your lender or have your attorney or loan modification representative contact them.

Now I’m not an attorney, but if I understand California’s foreclosure laws correctly, with a non-judicial sale, which it sounds like your situation is, you are given 90-days to cure the default once the lender records the NOD. That means you have to act quickly. If you don’t cure with the 90-days, your lender will record a NOS and will have the right to sell the property at public auction within 21 days after filing the NOS.

Start making contact with your lender and request a loan modification package. You’ll have to fill out financials and prove a hardship, but if you can afford a payment, there’s nothing that says your lender has to follow through with the foreclosure. But, they will for sure follow through with the foreclosure if you do nothing!

Ralph R. Roberts

Or the following scenario may be more precise on what I am asking advice on: If one has received a notice of foreclosure (NOD) and is OVER 3 months behind on mortgage payments; yet has NOT received a notice of sale (NOS) and is still residing in the home, does one qualify for a loan modification?

If a loan moficiation is not possible, what would you suggest is the next reasonable step for a homeowner?

Thank you,
Alicia from Orange County, CA