[caption id="attachment_34556" align="alignleft" width="300"] Dual tracking is supposed to cease.[/caption]
Many people are filing a Chapter 13 Bankruptcy in order to stop a foreclosure even though they are in a middle of a loan modification. It is not uncommon for a debtor to be in the middle of a loan modification feeling secure while relying on the mortgage company when they say "don't worry we are not going to foreclose." In reality the loan has been turned over to a foreclosure attorney to take the home through foreclosure. This dual process is called dual trackingandrefers to the practice of the mortgage company running the foreclosure process at the same time of running the loan modification process. As a brief review aforeclosure is the legal process by which the mortgage company will seek to take back your home because you are not making your loan payments. The article here will explain the Missouri foreclosure process.
HAMP, the Home Affordable Modification Program which can modify a mortgage, is no way to avoid bankruptcy. It's a heart-breaker. It builds up false hopes andthendestroys them. That's my conclusion from reading the new Congressional Oversight Panel report.
I haven't written on HAMP because I've questioned...
There are two states in the United States that follow the old British practice of 'strict foreclosure' - Vermont and Connecticut. Strict foreclosure will be ordered by a court in a foreclosure proceeding when there is little or no value to be recognized for the homeowner if the property were to be auctioned. Rather than go through the time and expense of auctioning the property to be foreclosed, the court will establish a deadline, called a 'law day' where the owner of the equity (the homeowner) must pay the mortgage debt in full of lose ownership in the property.