California Woman Loses Home To Foreclosure After Miscommunication Involving One Payment On Loan Modification Agreement

In Simi Valley, California, the Ventura County Star reports on a local homeowner who lost her home to foreclosure after a screw-up in the handling of one payment made on a loan modification agreement:

• [F]or [Josie] Lowe, the [foreclosure] sale came as an unexpected blow after more than a year of trying to work out a loan modification with her bank. At one point, she was given a payment plan to help her catch up with payments she had missed during a tough period while her mother was ill. She made payments regularly, feeling that she was upholding her end of the bargain.

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• In all, she paid the bank, then IndyMac, more than $21,500 from April 2008 to February. She has the MoneyGram receipts to prove it in a packet full of documents from the whole ordeal. But when she called on May 11 about a returned payment, she was told her home was being foreclosed and going up for auction the next day. Lowe couldn’t believe it. “I don’t know what I’m going to do, because I thought I was doing all the right things,” she said.

For more, see Simi Valley woman says she's shocked to learn of foreclosure, auction, buyer (Caught in the cracks). ForeclosureLockOuts