Asian Journal- The Filipino-American Community Newspaper

AS of July 12, 2009, there are about 100,000 loan modifications approved by the lenders in the whole United States since the start of the Making Home Affordable program of the government in March 2009. This number is very small in relation to the number of applications for loan modifications. It is very important that when you apply for loan modifications, you should know what the lenders are looking for. If your application is denied, the only way to avoid foreclosure is to pay the total amount of missed payments plus costs.

Answer: Generally, you can apply for loan modification up to the end of the 90th day given under the Notice of Default (NOD). This is called the period of redemption. The 90-day period is given under the foreclosure law for the borrower to make his account up-to-date or current. The lender will also offer some suggestions such as forbearance of payment, short sale or loan modification during this period.

Answer: If after the 90th day and the borrower did not apply for loan modification, the Trustee (lender) will publish a Notice of Trustee Sale for 20 days. After the 20 days publication period, the property will be sold at public auction. Generally, the lender will be the purchaser of the property.

Answer: Generally, the lender may allow the borrower to pay the total missed payments plus cost up to five days before the sale date in the Notice of Trustee Sale. Failure on the part of the borrower to act in a timely manner will result in foreclosure sale.

Answer: The 90 days given to borrower will apply if the lender was not granted exemption from the stay by the Dept. of Corporations. Generally most lenders were granted an exemption because they undertook to modify loans for qualified applicants.