The general rule seems to be that if a borrower has been behind for an extended period of time and has tried a modification as well as a short sale, the loan is ‘earmarked’ and will no longer be eligible to avoid foreclosure.  This is a big change from the last decade where homeowners were able to file modification after modification to extend out their foreclosure date and live in the home without making payments.  Many times this was done with the true intention of keeping the home and agreeing to a suitable payment.  Many times it was just a tool to stay in the home mortgage free.

It’s unclear if other banks and servicers such as Chase, OCWEN, SPS, Bayview, and others will follow suit with the more difficult timelines for homeowners seeking a short sale or modification.  Only time will tell, but bank-friendly trends such as these are often times adopted quickly across the industry.

If you have questions about whether you can extend your foreclosure date with your mortgage lenders through a short sale or modification, give me a call at 619-228-6200.