Utah Loan Modification Delays Cause Foreclosure

utah loan modification

Delays in the Utah Loan Modification Process

I received a call from a very frustrated and distraught homeowner today. For the last few months she has tried frantically to make contact with her lender and work out a repayment plan or Utah loan modification. She and her husband had run into some financial difficulties that caused her to fall a couple months behind. They have since recovered and had saved a few thousand dollars to help catch up the back payments. She made numerous attempts to get her lender to identify the amount of money necessary to bring her loan back into good standing. They kept telling her that they couldn’t discuss the numbers over the phone but would mail them out to her. Week after week they never came. The homeowner finally went so far as to obtain a PO Box address and notified the lender of the change of address. Still no communication identifying the amount needed to bring the loan current.

Lender Sets a Foreclosure Sale Date

Just the other day the homeowner made another attempt to contact the lender and identify the restatement amount. She spoke with a rep who told her that there was a foreclosure sale date scheduled 14 days from now. The homeowner couldn’t believe what she heard. Now she is scrambling to find a way to avoid foreclosure and keep her home. She may end up having to file bankruptcy to stop the foreclosure.

Delays are not Uncommon

This story is not uncommon. I talk with homeowners everyday that are faced with foreclosure in Utah. Many who have been working with their lender for months trying to successfully negotiation a loan modification in Utah or a repayment plan just to find out that the lender is not agreeing to their request and oh…by the way…there is a foreclosure sale date right around the corner.

Have a “Plan B”

Although I don’t have a great explanation for why this happens, I do want to caution homeowners who have all their eggs in the Utah loan modification basket. If you are currently in foreclosure and trying to work out a repayment plan or loan modification, you may want to have a “plan B”. A short sale my be the “plan B” you are looking for. To learn more about short sales in Southern Utah, visit our website or contact the Frei Team directly!

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