Bank Proceeding to Foreclosure Sale - During the Modification Process?

This is a discussion on Bank Proceeding to Foreclosure Sale - During the Modification Process? within the Mortgages, Refinancing, Foreclosure forum, part of the Buying & Selling Property category; My family is having an issue right now, and was hoping to get some advice on how to proceed. We ...

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Old Dec 5th, 2012, 03:49 PM   #1
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Default Bank Proceeding to Foreclosure Sale - During the Modification Process?

My family is having an issue right now, and was hoping to get some advice on how to proceed.

We have been in the loan modification process since February. The problem? The bank seems to be having an issue with figuring out her income because they can't figure out how she gets paid.

The borrower gets paid in an unorthodox way - she works as a nurse for a registry, she:
  • she works at different locations, based on the needs of the registry on any particular day - like a temporary assignment
  • gets paid an hourly wage plus travel expenses
  • receives pay on a pay card (debit card) within hours of turning in a timecard via fax
  • receives one or more paycheck stubs on a weekly basis - one for each day she worked, but all dated on the same date (the stub processing date)
  • her hourly pay is taxed
  • her travel pay is NOT taxed
Despite many attempts at explaining how the pay works (including at least 100 phone calls, letters from the borrower, and letters from the borrower's employer), the bank simply cannot figure out her actual usable income in order to process the modification. All of her paycheck stubs, pay card records, and every other requested document to support her income has been submitted time and time again. Our biggest fear is that the modification will be denied due to the bank's inability to add the numbers and figure it out. We have been assured that they have not yet DENIED the modification and it is supposed to be pending. Meanwhile, due to the legal ramifications, of course the bank is refusing to accept any partial payments towards the mortgage and will only accept the full past due amount back to February.

The kicker is that about a week ago, we found a notice on the door stating that the bank was proceeding with a sale at auction, indicating that the foreclosure is moving forward. We live in California, and there is new legislation that takes effect in January that prohibits lenders from foreclosing while a loan modification is pending. The problem is that the system doesn't even show a modification has been requested yet. Forms have been submitted to the bank but the point of contact with the bank STILL HAS NOT SUBMITTED IT FOR APPROVAL. He has all that paperwork and is still holding onto it, and the systems don't show that a modification has even been requested for our loan.

Is there ANYONE out there who has a clue what we can do to stop this? Is there any law in force that protects the house from being sold pending the modification process we are still in the midst of?

ANYTHING you can suggest would be terrific.
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Old Dec 5th, 2012, 04:03 PM   #2
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Default Re: Bank Proceeding to Foreclosure Sale - During the Modification Process?

I wish to inform you that borrower can show income through return of income filled with IRS. In his regard if borrower is having income then that income will come in reflected with returns filled with IRS. Further person can send in writing communication to bank that modification process is underway and that they are not showing correct information. If a person feels that foreclosure will be done then an injunction can be taken from court that bank should not foreclose the property untill modification matter is not resoled.

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