Perhaps you’ve heard that the federal government has imposed new regulations on Servicers (entities who collect mortgage payments on behalf of investors) with the intent of improving the loan modification process.

The Consumer Financial Protection Bureau (CFPB) imposed regulations on large Servicers effective January 10, 2014. Below is a partial list of timeline regulations imposed that should get you an answer to your loan modification, short sale, or deed-in-lieu request in 30-45 days.

• If a loss mitigation package is submitted to your Servicer 45 days before a foreclosure auction date you will be protected by the CFPB regulations.
• If the package is submitted 45 days before the sale date, the Servicer must provide you a missing items list by mail. If submitted 37 days prior to the sale date, you must contact them to find out what items, if any, are missing.
• After a file is considered complete, it should be submitted to underwriting and be decided in 30 days. Failure to do that is in violation with CFPB regulations.
• Foreclosure proceedings cannot begin until a borrower is more than 120 days late.

Did you know that the number one reason for denial on a loan modification request is “incomplete package?” How do you know if you’re sending the right documents? I know many people who keep sending documents by fax, email and mail to their Servicers and still don’t get positive results. Why? Let us help you.

Through NeighborWorks® Southern New Hampshire, a HUD approved housing counseling agency, HOMEteam’s certified foreclosure prevention experts are prepared to help you FREE OF CHARGE.

If you’ve been trying to get a loan modification and are getting the “run around,” please attend one of our information sessions. We’d love to help.