We want to update you on a recent occurrence that happened to an aquaintance of ours who was recently involved with a loan modification on his home in San Diego County, California.
We personally are steering clear of loan modifications, since only 1 in 10 actually succeed, and even less end up being a good fix for the homeowner. Ask us about our loan audit program for a good solution before a NOD is filed.
Our aquaintance had hired a local loan modification firm (not to be named here). He was on a payment plan. They would only move the file forward when they received the next $1,000 payment. A notice of default was posted against the house. He paid the firm another $1,000 and the file moved forward, supposedly. Then a Notice of Trustee sale was posted on his front door. Supposedly the loan modification negotiator spoke with the lender to postpone the sale. He even got a letter in the mail from the bank saying they were reviewing the file and it would be another 10-15 days before they made a decision.
We got the call when the agent for the bank showed up as his front door with an eviction notice! The bank had foreclosed on him in the middle of his loan modification. There was nothing we could do at that point.
So even if you are in a loan mod, it doesn’t mean you are safe from the bank foreclosing on you.
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