Loan modification in review with new forelcosure sale date

Reallife

LoanSafe Member
Selene finace the loan servicer has told us the loan is under review and the forclosure is on hold, same day the plaintiffs attorney made a motion to open judgment and set a new sale date. Can I make a motion to object a to this motion. Open for all suggestions.

Thank you
 

isisis

LoanSafe Member
Selene finace the loan servicer has told us the loan is under review and the forclosure is on hold, same day the plaintiffs attorney made a motion to open judgment and set a new sale date. Can I make a motion to object a to this motion. Open for all suggestions.

Thank you
Hopefully someone with experience within the judicial foreclosure process will come by to answer your question specifically. I can address it from a different angle having fought foreclosure for many years in a non judicial state.

There are various means of influencing a servicer's actions. The first and more successful approach is generally filing a complaint online with the CFPB.

In your complaint point out any actions the servicer took that frustrated your performance under the loan contract. This could include overcharging, telling you to skip payments, misleading information or misrepresentations of material fact or general unfair business practices. It could be their failure to comply with state or federal regulations involving loss mitigation or the foreclosure process. It could be Covid related. Here's an explanation of some of those regulations.


You'll be asked if you want to make your complaint available to the public. Agree to this, you'll be anonymous but the servicer won't be and that tends to light a fire under them as they'd prefer not having a spotlight shown on unsavory tactics. The CFPB sends the complaint on to the servicer within a day or two and they must respond.

This approach has taken some foreclosure sales off the calendar for me in the past. No promises but it's likely to be helpful.

Hang in there!
 

Survivor_IN

LoanSafe Member
Isisis gives good advise.

Also

Technically it is against CFPB (Consumer Financial Protection Bureau) rules against "dual tracking." Lender can't simultaneously move to foreclose and move to modify. Please google that for the specific regulation cause I don't have it ready at hand. Include the rule or regulation as a reason for your request. If you have a letter saying such, that is even better and you should include it. You would want an injunction to stop the sale during pending modification process and under review. I don't know if you can necessarily stop them from scheduling a sale date. Also include that a sale would cause irreprable harm as you intend to modify and resolve loan outside of court, This does not need to be lengthy motion.

I don't know if you have an attorney or not. I always recommend going to the local legal aid organization in your State. Right now preventing foreclosures and evictions is a priority for these legal service organizations. In general, you will have to qualify by income or by need. Some have self-help resources too.

Otherwise, as a pro se defendant, you need to learn local court rules and motion practice. Typically filing a motion includes filing a proposed order for the Judge to sign. IE I usually restate the action (injunction to stop sale during negotaions) and include an area for the Judge to check a yes/no agreement on simple orders.

Most of this is State specific. I am not an attorney.

Good luck!

Selene finace the loan servicer has told us the loan is under review and the forclosure is on hold, same day the plaintiffs attorney made a motion to open judgment and set a new sale date. Can I make a motion to object a to this motion. Open for all suggestions.

Thank you
 

Survivor_IN

LoanSafe Member
Also, respond as quickly as possible if you are not sure of the deadline to file a response. (An opposition to open judgement/ motion to enjoin sale during modification review) Usually motion response time is 5-10 days (plus 3 days extra if mailed) on motions and can be looked up in Court Rules. I would respond anyway even if the deadline has been missed due to COVID causing irregularities in the courts nowadays. Get it on record.
 

Moe Bedard

Call 619-379-8999
Staff member
Loan Safe Mortgage
Selene finace the loan servicer has told us the loan is under review and the forclosure is on hold, same day the plaintiffs attorney made a motion to open judgment and set a new sale date. Can I make a motion to object a to this motion. Open for all suggestions.

Thank you
You have to file a written answer to the complaint by filing an "answer" with the court deadline, which is usually between 20 and 30 days after service. Check the summons to find out how much time you have to file an answer in your case. You have to answer in the proper format and respond to each of the claims made and any defenses you might have in the complaint. You will have to admit, deny, or say you don't have sufficient information for each response.

If you have evidence that the lender or servicer made an error or is in violation of the law, you may be able to force them to start the foreclosure process over or get leverage to get a loan workout to save your home with a loan modification.
 

Moe Bedard

Call 619-379-8999
Staff member
Loan Safe Mortgage

Reallife

LoanSafe Member
Moe

Thank you very much for the response. I may have worded it wrong this an active forclosure with the motion to open judgement and set sale Date is what you said still applicable to do.
 

Survivor_IN

LoanSafe Member
It does appear Moe was addressing an initial foreclosure complaint. In those situation one does have 20-30 days and mounts a defensive/offensive to line items unlike responding to a motion which is usually 10 days and addressing a single issue.
 

Reallife

LoanSafe Member
If there is motion to open judgement and set new sale Date can I make an objection motion as the lender said forclosure is on hold( I have all names) as under review and because of dual dual tracking
Thank you
 

Reallife

LoanSafe Member
If motion get heard and granted should i appeal that as modification is in Review or bring an injuntion to stop the sale process as loan is in Review
 

Moe Bedard

Call 619-379-8999
Staff member
Loan Safe Mortgage
Moe

Thank you very much for the response. I may have worded it wrong this an active foreclosure with the motion to open judgement and set sale Date is what you said still applicable to do.
Yes, my answer would apply to a set sale date and yes, you can file an objection motion stating in your answer that the lender said forclosure is on hold( I have all names) as under review and because of dual tracking. The Consumer Financial Protection Bureau (CFPB) rules prohibit mortgage servicers from taking certain actions in foreclosure once they receive a complete loss mitigation application from a borrower more than 37 days prior to a scheduled sale.

The CFPB rule states that, if a servicer has already made the first foreclosure notice or filing and receives a timely complete loan modification application, servicers and their foreclosure counsel must not move for a foreclosure judgment or order of sale, or conduct a foreclosure sale, even if a third party conducts the sale proceedings, unless the borrower’s loss mitigation application is properly denied, withdrawn, or the borrower fails to perform on a loss mitigation agreement.
 

Survivor_IN

LoanSafe Member
Also, another thought, include in your written response of the modification appeal, "this is a legal request to accept application and finalize the modification in 30 days and to rescind (or stay) any further foreclosure actions and unlawful dual-tracking during loan modification resolution and to comply with any and all government extensions protecting homeowners during the pandemic."

I actually got action by using that phase, "this is a legal request" when corresponding with Servicer. If you have already appealed, then do this is a separate correspondence.

This is in addition to your legal motion objecting to a sale and "re-opening judgement." I am assuming this means they are legally trying to proceed where they have been legally stopped temporarily for one reason or another. (Did they actually state any reason to "stay" the FC proceedings such as modification and negotiation?) I have gotten repetitious legal filings saying virtually same things by Lender counsel during pandemic. It's as if they are trying to catch a non-response from you, in order to proceed. It's a tactic. They want to keep the matter alive and before the court. It will likely happen again.
 

Survivor_IN

LoanSafe Member
Okay, found some citations of rules and regs from CFPB website for use in this situation.

Please note that to the left are the relevant chapter titles of various servicing rules and regulations - you click this to open the list of the chapter and to navigate to the relevant section. You want to cite the correct rule in your correspondence (and also in support of your objections to opening judgement prematurely) and quote what it states that is relevant. Note that you have several rules that are legally relevant to the court matter in addition to a notice of error.

It would help protect your rights to send a "notice of error" to the servicer (Selene) regarding the moves to judgement and violation of dual tracking (and/or your legal request letter to correct actions and comply with foreclosure alternatives) It is imperative to use the phrase "notice of error" to get action. This is similar to the old fashioned "qualified written request."

§ 1024.35 Error resolution procedures. | Consumer Financial Protection Bureau (consumerfinance.gov)
 
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