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Regulations the bank must follow before foreclosing

Posted on: 17th Oct, 2012 07:34 pm
My question is : MUST a financial institution process and review a Home Loan Modification application before they begin foreclosure proceedings?

Second question: MUST a financial institution provide an associate of the bank to assist with the Home Loan Modification paperwork and all other matters pertaining to the Home Loan Modification process?

Third question: Does the financial institution have a specific period of time in which to process and review a Home Loan Modification application?

Fourth question: If a financial institution fails to do any or all of the above listed, and begin foreclosure proceedings, will they be held accountable under the Landmark Housing decision made by the Obama administration and the State Attorney Generals?

Fifth question: If yes to any of these questions, where can we find documentation or Illinois statutes to submit to the Courts to stop the foreclosure proceedings based on Federal regulations enacted through the Emergency Stabilization Act of 2008?

[size=9:84d8cd4dfe][color=Red:84d8cd4dfe][Email address deleted as per forum rules. Thanks.][/color:84d8cd4dfe][/size:84d8cd4dfe]
Hi Guest!

Welcome to forums!

If you have applied for a loan modification, then the lender will consider that first before foreclosing the property.

As far as I know, the lender will provide you with the loan modification papers but it won't send an associate to help you in filling it out. If you have any problems in filling it out, then you can contact the lender and take his help.

There is no specific time period to process the loan modification request. It might take quite some time to process the request.

Feel free to ask if you've further queries.

Sussane
Posted on: 17th Oct, 2012 09:06 pm
If you haven't applied for loan modification when you were delinquent on your mortgage payments, then the lender can start off with the foreclosure process. It is not mandatory for the lender to offer you a loan modification unless you apply for it.
Posted on: 18th Oct, 2012 03:28 am
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