The Reality of Foreclosures. In California thousands of homes are auctioned in foreclosure every week. Most of these homes still have people living in them on auction day. Unfortunately it is common for banks and trustees to continue the foreclosure process even while homeowners are seeking help. The ordeal can be very stressful and overwhelming. Although most homeowners understand that working with the bank is free, it is very difficult. Most homeowners find the process too daunting and look for third party companies for help. Unfortunately there are plenty of con artists who prey on vulnerable people. Nonprofit organizations and government agencies are working together to warn consumers of the danger of mortgage relief scams and how to avoid them. The easiest way to avoid being scammed is to never pay upfront fees. In California, it is actually a violation of Senate Bill 94 (SB94) to accept fees upfront for assisting homeowners with loan modification or foreclosure assistance. If a company wants you to pay them upfront for help, they are breaking the law. You should only work with reputable companies who do not charge up front fees.
At Home Retention Alliance of California, we understand how difficult it can be when applying for a loan modification.
Foreclosure While Applying for Loan Modification. The truth is, only a very small percentage of homeowners who apply for loan modification actually get approved. The process takes a very long time and there is a very small window for homeowners to qualify. Unfortunately most homeowners are turned down for loan modification due to insufficient income and lose their home to foreclosure. A majority of homeowners who are in the process for modification they find themselves in foreclosure. The reason is that the foreclosure process can be faster than the loan modification process. Banks have every right to continue the foreclosure process as long as the homeowner is not making payments, even if the homeowner is in the process of applying for loan modification. Some homeowners believe that just because they have applied for a loan modification or listed their house for short sale, that their bank will stop the foreclosure process. Unfortunately this is not true.
Application vs. Review. Government officials have stepped in and created a series of bills such as the “Homeowners Bill of Rights” to protect homeowners from foreclosure while seeking help. The bill prohibits banks from foreclosure while the homeowner is in review for a loan modification or short sale. Unfortunately banks have found a loophole. Applying for a loan modification does not mean you are in review for loan modification. In order to be in review, the homeowner would need to be considered approved eligible which would require the homeowner to: pass the phone interview, submit of all income documents, qualify the debt to income ratio, and assign an underwriter. It’s similar with a short sale. Your bank will not postpone your foreclosure just because your house is listed for short sale. The bank requires a buyer who has submitted an offer with an earnest money deposit in escrow. Almost all banks require the offer to be submitted a minimum of 14 days prior to sale date in order to review the offer. Thousands of homeowners in California lose their home in foreclosure while they are applying for help with a loan modification or short sale.
If you have a sale date within 14 days and your bank cannot guarantee that they will postpone your foreclosure, call us and see if we can help.
Trustee Postponement Service. For those homeowners facing foreclosure who just need to buy some time, we have a program called Trustee Postponement Service. We would assist the client by postponing the foreclosure sale date. Unlike law firms and other loan modification companies, Home Retention Alliance of California does not charge upfront fees. We would not collect any fees until the foreclosure has been successfully postponed. Foreclosure Postponement Service works by challenging the foreclosure with the trustee, not the bank. The trustee is the third party company hired by the bank to foreclose. Home Retention Alliance of California would not contact your bank at any time. We understand that certain trustee companies have taken short cuts in the foreclosure process to save costs. Those short cuts include filing foreclosure documents incorrectly and even forging signatures. By challenging the many different violations, the trustee is forced to postpone the foreclosure sale date until the document is corrected.
NO Upfront Fees. There are many law firms that charge $5,000- $10,000 to postpone foreclosures by “suing the bank”. A lot of companies prey on homeowners who are desperate for help. They will make false claims such as getting the principle balance reduced to market value or even owning the home free and clear. Most of these companies charge money upfront, any company that charges money upfront is breaking the law (California Civil Code 2944). In October 11, 2009 Senate Bill 94 (SB94) was passed, which prohibited attorneys from charging upfront fees to homeowners as well. The easiest way to protect yourself from being ripped off is to never pay money up front. In California, foreclosures are processed non-judicial, meaning the foreclosure is not processed in court. You don’t need to hire an attorney to postpone your foreclosure and filing bankruptcy is not the only way to postpone your sale; when filed multiple times, it can be considered bankruptcy fraud. Home Retention Alliance of California does not charge upfront fees. Call us today to see if we can help.