New Deadline For Suspension Of Foreclosure Sales After Submission Of A HAMP Request For Loan Modification

New Supplemental Directive 10-02 which takes effect 6/1/10 states that if you submit a HAMP loan mod request at least 7 days before the foreclosure sale date, the loan servicer must suspend the sale to evaluate the papers. There are some exceptions to the suspension rule including failure to make trial mod payments after receiving a HAMP offer and borrowers already determined to be ineligible.

The bottom line is this – if you are facing a possible foreclosure sale and are considering applying for a loan modification, do not delay even for a day. My firm is currently representing many homeowners and borrowers in this situation. We have sent out many requests to lenders to postpone sales pending review of a loan modification. Nearly every lender has been cooperative when we have made the request at least a few days before the sale with a full loan mod package already submitted. Call or email us today if you are concerned about your mortgage and want to discuss your options.