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Can lender forclose after you have filed for modification?

Posted on: 01st Aug, 2011 09:57 am
I have tried 3 times to modify my mortgage, each time I received a different denial. This last modification I was put on trial payments and after making all of them on time, they still denied me stating not enough income. I am now thinking to either re-apply for 4th time or ask for deed-in-lieu. After loosing my previous job, my income was cut almost in half with current employer. Would love to keep home, but thinking now it might be better to just sell or ask for deed-in-lieu. My credit is already shot now!! Please give suggestions....
There is nothing that would stop the foreclosure, other than curing your loan, getting approved for a Permanent Loan Mod, or selling it. If you try again and get denied for the loan mod, then you would probably want to move on. A short sale or a deed in lieu are much better alternatives for foreclosure. Keep in mind that certain states allow for deficiency judgements that can come after your assets for 20 years, and there is tax implications on short sales, and foreclosures. Speak to a CPA and or an attorney for the best advice and good luck.
Posted on: 01st Aug, 2011 02:55 pm
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