Dallas Bankruptcy Lawyer: FORECLOSURE POSTPONED? GET IT IN WRITING!
Foreclosures are on the rise, and so are loan modifications. Politicians, banks, and debt relief agencies praise the process of modifying loans as a way to help homeowners save their homes. Lately I have noticed another disturbing trend. Homeowners in danger of foreclosure are waiting to file Chapter 13 bankruptcy in hopes of getting a loan modification, and relying on mortgage lenders verbal assurance that the foreclosure sale will be postponed.
Over the last year I have met with several people who relied on a verbal promise from their mortgage company that the foreclosure of their home would be postponed, only to find out later that the foreclosure sale took place. Unfortunately there are few options available to these debtors. They may have a cause of action against the lender because they relied to their detriment on the mortgage lender’s broken promise, but when a promise is verbal it can be difficult to prove what was said. Also, even if they are successful in a lawsuit against the mortgage lender they may receive some money damages but it is unlikely that they will get their home back.
If your home is scheduled for foreclosure, and you have been told by your mortgage lender that the sale will be postponed so that you can pursue a loan modification, get confirmation that the sale will be postponed in writing. If your mortgage lender won’t provide written confirmation that the foreclosure sale will be postponed, then you should consider filing Chapter 13 bankruptcy.
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