Will attempting to modify stall foreclosure?

[greenthinker]

Our Ch. 13 plan was just modified to surrender our home because we are underwater by over $100K. Up to this point, we tried to get the lender (B of A) to modify the loan, and they have dragged their feet to the point where we knew it wasn’t ever going to happen. Now, just a couple of days after the judge entered the order to modify the plan, lo and behold a FedEx package arrives from B of A saying we may be eligible for a “significant principal reduction”.

We would be interested in keeping the house if we thought that could actually happen, but given B of A’s track record, it’s hard to be even cautiously optimistic. At the very least, we’d like to stay in the house payment-free for as long as possible. So, my question is this: Would continuing to pursue the modification at least delay them from beginning the foreclosure process?

Thanks!

[tobee43]

we were right in the middle of our loan mod when we were served with a summons to foreclose.

you can attempt to fight. washington state is both a judicial and non-judicial state. which means if the lender goes the judicial route you can tie the foreclosure up by attending the court appearance and attempting to have the judge allow you stay. (i know someone who did this for over 2 years). i would check to see what of type of foreclosure process is being used in your area. in some states it's clear as to how the lenders proceed, yet, in a few of the states they use both processes to foreclose.

best of luck to you!

[HHM]

That is BofA's "standard" package. Once you submit everything, the same feet dragging will take place.

There is no "definitive" answer. Generally, a bank will delay a foreclosure to allow the modification process to work itself through, but depending on your state, it can be a very nerve wrenching experience. In my state, they don't move the foreclosure date until about 2 weeks before the foreclosure.

Here is the thing...the odds of getting a principal reduction are slim. No harm in submitting the application and see what happens, but I wouldn't hold out much hope.