A major impediment to mortgage modifications is the bank practice of “dual tracking” mortgages. When a mortgage is dual tracked the bank pursues foreclosure while at the same time allowing the home owner to pursue a modification. The problem with this is that in spite of an eminent, or completed modification the bank will still sell a home at sale leaving the owner homeless.
A personal experience of mine is witnessing a hearing for final judgment where the owners were standing there with a cashiers check sufficient to satisfy their mortgage and the bank was still asking for an order to sell the home. This happens because there is no communication between the areas of the bank supervising foreclosures and modifications.
This is why it is so important to contest a foreclosure even if you are working with your bank on a modification. You may believe you are on your way to saving your home only to have it sold out from under you.
If you are facing foreclosure and/or seeking a mortgage modification, please contact me so we can discuss how I can help.