More Florida homeowners, once facing foreclosures, are now receiving loan modifications in order to save their homes. According to a news report, a Florida mother of two who had received a loan modification discovered that, despite the modification, her home was still scheduled for sale.
The woman’s lender first initiated foreclosure proceedings in 2008. During the summer of 2013, she received a temporary loan modification from the lender and assumed the foreclosure sale would be cancelled. She later discovered that it had not. With help from the Legal Aid Society, she filed her own motion to stop the foreclosure, and the judge terminated the sale. Two days later, she found out the sale was not cancelled and was re-scheduled for October.
Frustrated and not knowing exactly where to turn, she decided to call a local television station. Apparently with the station’s guidance, a spokesman for the station said that the woman’s home will not be sold. According to the article, a local attorney suggested the possibility that she had not received official permanent modification status. He also added that the second scheduling of the sale is a common occurrence for someone who has received a loan modification and may have been caused by the lack of synchronization between the banking system and the courts.
Loan modification may be a possibility for avoiding foreclosure. However, lenders are under no legal obligation to offer one.attorney for may be able help those Florida residents in situations similar to the one above. An attorney may be able to obtain a stay of the foreclosure process in order to allow time for the person to possibly reorganize their finances or determine another course of action.
Source: CBS 12, “Home Loan Modified, So Why Is Sale Still On The Docket?”, Chuck Weber, August 19, 2013