Dual Tracking Derailed by FED

Well, if you're in the process of trying to get a loan mod situation and simultaneously facing foreclosure, you may have just gotten a lifeline thrown your way! Frequently, people facing an imminent foreclosure on their homes try to avoid it by applying to their lender for a loan modification. Some succeed, some don't. However, all too often the left hand in the bank never tells the right hand what's going on and the foreclosure happens even when a loan mod is underway, or, in some cases, approved. This is what's referred to as the 'dual track'. Under new regulations issued by Federal regulators this month, banks MUST cease foreclosure action against any homeowner who has been approved for a loan mod, regardless whether the approval is a trial loan mod or a permanent one. If you are in this situation, get in touch with your banker IMMEDIATELY, and get confirmation, preferably in writing, that your lender is aware of this new regulation and has covered your situation with it.
For those of you in California, a new bill is in the state Senate, SB729, that would go even farther if approved. Authored by Mark Leno and Darrell Steinberg, it seeks to immediately stop foreclosures the instant that a loan mod application is made. This would allow the homeowner time to negotiate the mod with the lender without that foreclosure sword dangling dangerously over his or her head. At first reading, it failed to clear committee, tying 3-3. But another reading is scheduled on Wednesday, May 4. California Mortgage Bankers Association, as you would expect, is totally opposed to the bill. What to do? Call, write, email your legislator and tell them to support the bill. The home you save may be your own!