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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Trustee Sale "Stay" and Loan Modification Posted by Craig in LA on April 05, 2009 at 12:42 AM In Reply to: Trustee Sale posted by Jerry - Ca. on April 05, 2009 at 11:31 AM : I've been working with a Debt Resolution Company and they say to stay away from Loan Mods with a Trustee Sale scheduled in 30 days or less. Since owners receiving the NTS are prime candidates for modification ... I wanted to solicit them as well as Notice of Default recipients. : I know that once a lender' legal department receives notification of "loan fraud" violations found in the Loan Doc.'s forensic audit completed by us, they must legally respond to the complaint within 20 days of notiifcation and settle the the dispute within 60 days of the said notice. : My question is that I have been told by a Mortgage Broker friend that he attended a modification seminar and the NARS attorney said that there was a California law that automatically stay the Trustee Sale once the loan modification negotiations begin! Can anyone point me to the statute or code where I might find this law ... if it exists. : I know I can have these potential foreclosure owners declare bankruptcy and get an Emergency stay of the "sale". I don't want them to have Bankruptcy on their credit report for ten years ... to be filed simply as a delaying tactic to get the loan mod. started! : Jerry-Ca. 1. You are confusing a "qualified written request" with a loan modification. The qualified written request must be acknowledge within 20 days and responded to within 60, but most lenders don't meet this deadline. This request is basically a demand for an accounting on the mortgage loan and is the starting point of negotiations, not the beginning. The lender will take anywhere from a few weeks to several months to negotiate the actual loan modification. The average time is 90-120 days. 2. Senate bill 1137, which went into effect last September, mandated an additional 30 day notice and strongly recommended that lenders modify loans. The bill is poorly worded, and right now judges are of the opinion that there is no mandatory duty to stay foreclosure proceedings or stop a trustee sale. I know this because I have been told this now 5 times by five different judges in 5 different courtrooms, but I am stubborn and keep trying. Assembly Bill 7, which goes into effect next month, looks better. 4. To avoid emergency bankruptcy filing - either you or the homeowner must initiate contact with the lender well before the trustee sale date - like just after your first contact. The lenders will blow you off if your first call is the day before sale - they have lots of other things to do rather than save your butt at that point. 5. The more noise you make, the better your chances, so make sure there is contact. 6. Free guidance for deals on the day after Palm Sunday - examine your homeowners gross DTI carefully. If the house payment is 50% of income or less, the odds are very good the loan can be modified; if the ratio is greater than 50% the numbers don't work and they will need to leave - you are then looking at a short sale or investor assistance. This tidbit is rather hard won intelligence. Follow Ups: Re: Trustee Sale "Stay" and Loan Modification Jerry - Ca. 1:09 PM, 04/05/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I've been working with a Debt Resolution Company and they say to stay away from Loan Mods with a Trustee Sale scheduled in 30 days or less. Since owners receiving the NTS are prime candidates for modification ... I wanted to solicit them as well as Notice of Default recipients. : : I know that once a lender' legal department receives notification of "loan fraud" violations found in the Loan Doc.'s forensic audit completed by us, they must legally respond to the complaint within 20 days of notiifcation and settle the the dispute within 60 days of the said notice. : : My question is that I have been told by a Mortgage Broker friend that he attended a modification seminar and the NARS attorney said that there was a California law that automatically stay the Trustee Sale once the loan modification negotiations begin! Can anyone point me to the statute or code where I might find this law ... if it exists. : : I know I can have these potential foreclosure owners declare bankruptcy and get an Emergency stay of the "sale". I don't want them to have Bankruptcy on their credit report for ten years ... to be filed simply as a delaying tactic to get the loan mod. started! : : Jerry-Ca. : 1. You are confusing a "qualified written request" with a loan modification. The qualified written request must be acknowledge within 20 days and responded to within 60, but most lenders don't meet this deadline. This request is basically a demand for an accounting on the mortgage loan and is the starting point of negotiations, not the beginning. : The lender will take anywhere from a few weeks to several months to negotiate the actual loan modification. The average time is 90-120 days. : 2. Senate bill 1137, which went into effect last September, mandated an additional 30 day notice and strongly recommended that lenders modify loans. The bill is poorly worded, and right now judges are of the opinion that there is no mandatory duty to stay foreclosure proceedings or stop a trustee sale. I know this because I have been told this now 5 times by five different judges in 5 different courtrooms, but I am stubborn and keep trying. Assembly Bill 7, which goes into effect next month, looks better. : 4. To avoid emergency bankruptcy filing - either you or the homeowner must initiate contact with the lender well before the trustee sale date - like just after your first contact. The lenders will blow you off if your first call is the day before sale - they have lots of other things to do rather than save your butt at that point. : 5. The more noise you make, the better your chances, so make sure there is contact. : 6. Free guidance for deals on the day after Palm Sunday - examine your homeowners gross DTI carefully. If the house payment is 50% of income or less, the odds are very good the loan can be modified; if the ratio is greater than 50% the numbers don't work and they will need to leave - you are then looking at a short sale or investor assistance. This tidbit is rather hard won intelligence. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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