Foreclosure - If You Wait Too Long!

   Prior to the enactment and implementation of the federal bankruptcy laws designed to help people keep their homes there were always a few people in trouble and waited too long before seeking bankruptcy legal advice on Chapter 13.  These few were faced with the bitter truth that their failure to act promptly resulted in their home being lost to a lender at foreclosure.  Fortunately, in the past, this situation only rarely occurred.
   Things have changed for the worse.  The situation has become complicated in a number of ways: one of the most frequent of which is a couple attempting to modify their mortgage at the same time the foreclosure process is going on.  On the one hand they are receiving notices leading to foreclosure at the same time they are being told their request for modification is being processed and will surely be approved.  It’s really sad when you are getting mixed signals to not be concerned with the foreclosure process because the modification will fix the problem.  In a significant number of cases, within a few short days of the foreclosure sale, they are told their loan modification has not been approved and by the way the loan modification personnel can do nothing to help postpone or intervene saving your home!
   This type of news is shocking and sets most people in shock as they try to come to grips with what wasn’t a “fix” but an absolute nightmare facing foreclosure within a few days.  By the time most people come to grips with the foregoing situation and scramble to obtain bankruptcy legal advice to save their home from foreclosure, it’s too late!!  How this type of situation is allowed to happen almost seems criminal. The sad truth is our government set aside billions of dollars to fix home loans that were in trouble, adopted rules and regulations on how these situations should be handled yet provided no one in charge to make sure the banks and mortgage companies play fair.