At Loan Lawyers, we have helped thousands of South Florida homeowners procure HAMP and private in-house modifications, resulting in significant reductions in their mortgage payments. Many of the homeowners that we have helped get modifications have previously been denied by their banks, through NACA, or through other law firms or modification centers.
In addition, we often appeal modification denials many times until we are successful. While there is no guarantee that every homeowner will get a modification, we tell our clients that if there is a way to get a modification, then we call help you get it. Tap To Call: What should I do? Get a Free Consultation.
At this point, the borrower generally has 30 days to request an appeal and provide the servicer with additional information that will impact this decision. However, if the denial was because the mortgage or property was ineligible, the offer was not accepted by the borrower, or the loan was previously modified, then the borrower does not have the right to appeal the decision. If the loan was denied because of the net present value test and the borrower disagrees with the property value, the borrower can request a new appraisal.
Thus, guidance from HUD will be necessary to determine whether, if at all, the appeals process outlined in the National Servicing Standards should be implemented within the FHA program. Both the National Servicing Standards and the FHA guidelines set out timelines servicers must follow when referring borrowers to foreclosure and proceeding to a foreclosure sale.
FHA guidelines have strict standards regarding when foreclosure must begin and a relatively short timeline during which the servicer must either complete a loss mitigation option or refer the borrower for foreclosure. Meanwhile, the National Servicing Standards do not provide an overarching timeframe for completing loss mitigation evaluations and referring borrowers to foreclosure, but do require servicers to halt foreclosure if borrowers request loan modifications following foreclosure referral and to provide the borrower with a day appeal period if the application is denied.
While servicers under the FHA guidelines must stay foreclosure proceedings during loss mitigation evaluations and trial payment plans, once foreclosure is initiated, the servicer must exercise reasonable diligence in prosecuting the foreclosure proceedings to completion.
And, while dual tracking after foreclosure referral is prohibited under the National Servicing Standards, under the FHA guidelines, the servicer is required to continue to work with a borrower to find an appropriate loss mitigation option up until the foreclosure sale date, which may result in loss mitigation during the foreclosure process. Again, HUD will need to clarify whether its foreclosure timeframe requirements will prevail over the appeals process and any dual tracking requirement that could prohibit loss mitigation evaluation of borrowers in the pre-sale foreclosure process, or whether HUD will grant extensions of its foreclosure timelines so that servicers can adhere to the lengthy appeals and dual tracking restrictions contained in the National Servicing Standards.
In conclusion, while many of the National Servicing Standards can be implemented within the FHA program without conflicting with existing FHA requirements, conflicts do exist between the guidelines that cannot be resolved. Even where compliance with both FHA requirements and the National Servicing Standards is technically possible, the National Servicing Standards, tailored for conventional servicing programs, do not easily fit in with a government guaranty program.
Any loan modification denials must be reviewed internally by an independent evaluation process within thirty days of the denial determination or the mailing of the notice of denial to the borrower, whichever occurs earlier. See subsection 3 of this section for additional requirements on borrower appeals. See h and i of this subsection. If you offer the borrower a loan modification, you must delay a pending foreclosure sale to provide the borrower with fourteen days in which to accept or deny the loan modification offer.
If the borrower accepts a loan modification, you must suspend the foreclosure proceeding until such time as the borrower may fail to perform the terms of the loan modification.
0コメント