Does HARP Request Starts Foreclosure Clock?
Note: This blog is the 3rd in a series about what happens when the homeowner calls the bank’s customer service center requesting a modified mortgage after the homeowner has missed a payment.
In my last blog I was so bold to say that when the homeowner calls the big bank/mortgage company’s customer service center the representative sets the account up to start proceedings toward foreclosure. Why did I say that? – I’ve not read the instruction manual of every bank! But I’ve seen it happen time and time again. I also worked for a major employer in collections, the first big automated collections agency back when computers and collections were first combined. I was there when the book of procedures was written.
Here’s why the call by the Homeowner Starts the Foreclosure Clock. Take a look at the laws in Oregon: 2010 Affidavits for loan modification –
HB 3610: A requirement that a trustee deliver a notice to a borrower of default on a residential trust deed and the filing of an affidavit was passed in 2009 (SB 628). HB 3610 modifies the affidavit requirement to require that it be filed at least five days before the sale of the property (rather than on or before the date of the trustee’s sale, as required previously).The bill also requires the lender to provide additional information to a borrower requesting a loan modification and to provide an explanation to a borrower if the lender determines that the borrower is not eligible for a modification. HB 3610 presumes that a lender is complying with these requirements if the lender is already providing a similar notice as required by the federal Homes Affordable Modification Program. (Chapter 40, 2010 Laws)
I’m not a lawyer, but it appears as though this law was meant to give the homeowner more warning and better treatment. However, if the homeowner calls in, then the lender can up the speed of the foreclosure process, because the homeowner is in contact with the lender. When something like 90 percent of the defaulted borrowers are not in contact with the lender, and it’s hard to track them down, the lender will go after the “low hanging fruit,” the one that called in.
How Homeowner Starts Foreclosure Clock
Again, I’m not an attorney, but it appears that the banks have interpreted the law to mean that the lender has to offer the HARP first, (the conversation on the phone qualifies) and then they can start the clock toward foreclosure notice. So, the customer service rep includes in their documentation sent HARP docs to address …. verified address. (of course they have acronyms to shorten this because they type it all day long.) ” NEXT ACT -PRE Foreclose.”
So Homeowner – you better have your paperwork ready BEFORE you call! If you want some pointers, call me. 541-868-4427. Your Pre-Foreclosure Advocate