Judge Stalls Foreclosure Sale Approval; Loan Servicer Failed To Stop Legal Action Despite Agreeing To Loan Modification, Says Homeowner

In Port St. Lucie, Florida, TC Palm reports:

• A Port St. Lucie couple whose home was bought by their mortgage bank for $100 in a foreclosure action Oct. 9 has won at least a temporary reprieve. In a hearing Wednesday, Circuit Judge Burton Connor ordered a postponement of the final sale pending an evidentiary hearing in the case. Frusner Raphael and his wife, Woline, had requested the foreclosure sale be voided, alleging their lender broke the federal government’s rules.

• The Raphaels aren’t alone in facing a frustrating situation where the lender says they’re willing to work with the homeowner, but while a modification process is going on the lender continues with the foreclosure.(1) [...] The Raphaels contend that the lender, California-based OneWest Bank, told them on July 13 that they were pre-approved for the modification, which would take about 120 days to complete, but proceeded with the foreclosure anyway.

For more, see Lenders continue foreclosures after agreeing to housing loan modifications.

(1) Another homeowner, Jim Maurer, was approved by Countrywide for a modified fixed-rate mortgage that would lower his monthly payments by $300 starting in February. After he had made a few payments, though, he received the check for his May payment back with a letter saying the amount was not enough. After he contacted the lender, they sent him an application for a new modification, which he refused. “I don’t need another modification,” Maurer said. “I already have one. [...] Bank of America is just rolling over people.” Five months later, Maurer said he has had phone conversations and exchanged letters with people in three different Bank of America divisions, including a senior vice president in the home retention department, but still does not have confirmation the modification is in place. Since June, however, Bank of America has been cashing his checks.