Does foreclosure start over?

[BROKEDED]

In NC a new regulation, from the Commissioner of Banks, goes into effect June 1st that states that if a homeowner requests a loan modification, the foreclosure process must halt.

I'm still waiting on clarification of a few things from the NCCOB about the timeline and exactly who this does or does not apply to but I have a few questions for you guys that might know.

In my county, an attorney will file a special proceeding which normally gives at least 20 days until a hearing before the clerk of courts. If nothing changes, a sale date is then established at least 20 more days after the hearing. With days in between for this and that there should be at least 60 days from start to finish.

My question is this...If I request a modification right before the sale date, and assuming the foreclosure process stops (per the new rules), once the modification fails (it will), does the attorney have to start over with a new hearing, and then new sale date???

If I then file ch 7 before the next sale date, does a new hearing and sale date have to be set after the discharge as long as the trustee doesn't lift the stay?

[BROKEDED]

chirrrp-chirrrp chirrrp-chirrrp (crickets)

[justbroke]

From what I understand, as a former NC property owner up to November last year, is that this modification request only sgtays the foreclosure proceeding. I believe they may need to "re-notice" you only for a new sale date, but they don't have to start from scratch.

NC is a "non-judicial" foreclosure State where most homes are financed using a "Deed of Trust". This makes foreclosure real quick since the "owner" never held the Deed/Title.

So, my answer is that it only requires a re-notice of a new sale date no sooner than 20 days out. It does not reset the entire foreclosure process. This is the SAME way it works for Bankruptcies, so I wouldn't think they'd give "modifications" any more power.

[BROKEDED]

From what I understand, as a former NC property owner up to November last year, is that this modification request only stays the foreclosure proceeding. I believe they may need to "re-notice" you only for a new sale date, but they don't have to start from scratch.

This is what I figured would be the most likely case but I can dream can't I? I hope you're correct about that. I can't imagine that they wouldn't have to at least renotice me for a new sale date as the house would still be mine.

NC is a "non-judicial" foreclosure State where most homes are financed using a "Deed of Trust". This makes foreclosure real quick since the "owner" never held the Deed/Title.

Another reason I don't like NC. So far I've only been sent a form letter from the 1st's attorney telling me my options. I haven't appeared on their website "yet" for pending properties but I fear my time is drawing nigh. I've made no contact with either mortgage company or their delegates. Like they say, hindsight is 20/20 and I'm sure I'll look back with all the shoulda, coulda, woulda's but right now it seems like the best thing to do. I don't know that contacting their attorney would be beneficial unless I wanted to short sell or ask for a deed in lieu. I'm not sure, either, if telling him that I planned to ch 7 before they foreclosed would prolong anything. I would be afraid that he might speed his end up to try to get his billing in.

So, my answer is that it only requires a re-notice of a new sale date no sooner than 20 days out. It does not reset the entire foreclosure process. This is the SAME way it works for Bankruptcies, so I wouldn't think they'd give "modifications" any more power.

It's better than nothing I guess. As you might suspect, I'm trying to milk this for all it's worth. I know the ship's going down but I'm still going to be the guy hanging on at the top of the mast until the last second....I may even do a swan dive for some extra time and just hope it's not a belly flop.

[BROKEDED]

[QUOTE=justbroke;408977]From what I understand, as a former NC property owner up to November last year, is that this modification request only stays the foreclosure proceeding.QUOTE]

Btw, do you happen to know if this new regulation has a time limit? For instance does it stop the process for 30, 60, or 90 days or is this something that the mortgage company can say 20 days into it, "Nope, you don't qualify." and then tell their attorney to move ahead with the foreclosure.

[justbroke]

No, I don't understand the specifics of how it works. I believe it only requires that you "work" with the mortgage company or that they "tried" to help you.

[BROKEDED]

Hmm, well hopefully I can find this out by the middle of this week. The banking commission is supposed to email me with the verbage to the new regulations.

More specifically, my understanding is that the second regulation says that banks and S&L's do not have to abide by the first regulation. Both of my mortgages are held by "divisions" of their respective bank so I should find out if they are or are not considered banks as well.

If they are, this whole discussion is probably moot and I'll have to figure out another way to delay.