Dual Tracking Regulations

The Consumer Financial Protection Bureau rolled out a rule and a few states have passed laws in recent years to restrict mortgage servicers from dual tracking. This means that a mortgage servicer cannot continue the foreclosure process if the homeowner is working on securing a loan modification. Under the new guidelines, when you submit a valid loan modification package, the foreclosure process must be halted until the application has been fully reviewed.

Under the new rules, a mortgage servicer cannot initiate a foreclosure until 120 days after you fall behind in payments. Furthermore, the mortgage servicer cannot start the foreclosure process if a home rentention workout review is pending.

If you submit a complete and valid home retention application to your mortgage servicer after the foreclosure has started, but more than 37 days before a foreclosure auction date, the servicer must stop the foreclosure process until:

• You are denied a loan modification
• You do not accept the modificaiton you are approved for
• You accept the modification but you do not comply with the terms such as missing the trail payments.

Homeowner Bill Of Rights Protects Against Dual Tracking

A Homeowners Bill Of Rights that makes dual tracking of foreclosure has been passed in California, Nevada, and Minnesota. Under the Homeowner Bill Of Rights this means that mortgage servicers must either grant or deny a 1st lien loss mitigation application before beginning or continuing the foreclosure process. If the lender denies the loan modification application it must not proceed with foreclosure until the rebuttal period expires.

If you need assistance with a short sale, loan modification, foreclosure postponement, or have any questions please complete the form below.

[contact-form-7 id=”155″ title=”Contact form 1″]