When you are looking into or are in the process of procuring a home loan modification, there are two massively important dates you must make sure you don't miss, or you will be unable to save your home. Both of these dates deal with the foreclosure of your home when a sale date has been set for your home to be sold at auction. Most of the people I counsel for home loan modifications have a foreclosure date already set or are close to having that date set. Just because you have a loan modification in process does not make a foreclosure sale date automatically go away or be postponed.
So, what are the dates that you need to be sure to adhere to in order to save your home?
1. The first one is you must have your complete modification package into the lender no less than 7 business days before the sale date in order for the investor to be able/willing to postpone or eliminate the sale date. I say complete because if you just send in the application without being complete or without the required supporting documentation just to get on record as meeting that deadline, it won't work. When they say a complete package, they mean the whole enchilada. I would also add that sending it at 11:57 pm on the last day allowed, that won't cut it either, even if you have a fax confirmation. The complete package must be shown as having been received on their end and in their system by the deadline, and that can take 24 hours in most cases. With this being an incredibly important process, I would suggest you not play with fire and cut it close. Do not take any chances and get the package in ASAP to avoid any questions about timing.
2. If/when your sale date has been set, this can be one of the most stressful situations any of us can ever go through. This next deadline is one that will only cause more stress as it is equivalent to speeding close to the edge of a cliff and slamming on the breaks at the last minute. I mentioned above that just because you have a modification request in process, the sale date is not automatically erased. That sale date will stay on the books and in place and you can not request they move it until you are within, yes within, a 5-day window of that date. Once you are within 5 days of your sale date, you can then call the investor you are working with, ask them to contact the attorney who is working your case, and put the request in to postpone the sale. This process isn't immediate and you will be told that it may take a couple of days for that request to be done and no one will guarantee that anything will even happen! Again, just adding more stress to the scenario. If a full package was sent/received before the 7-day window, in most cases, the sale will be postponed if you make the calls and formally request it to happen. I can not stress enough that this too is something you really shouldn't wait until the last minute to work on. Calling the day before will most likely end in heart ache.
These two deadlines are very important for you to be aware of should you wish to save your home from foreclosure. You can and will feel like you have flat-lined and been brought back to life when dealing with this process, but trust me, if you don't play the game by these rules, the outcome will not be a good one. One more way to help you manage your mortgage.