If you’re having a hard time paying your mortgage, you may want to pay attention to the following rules, which were instated by Minnesota Governor Mark Dayton on August 1, 2013.
1. Mitigations and modifications
A loan servicer must work through all possible loan mitigations and modifications with the borrower prior to advertising the foreclosure. The point of these discussions is to offer the homeowner reasonable time and options to get back on track with their loan payments. (A loan servicer is the party that acts upon defaulted loans on behalf of the owners of the loan.)
2. The end of dual tracking
Second, lenders are forbidden from dual tracking, which occurs when a loan servicer proceeds with a foreclosure prior to a loss mitigation application being approved or denied. Essentially, this means that the mitigation process will be finalized, with notice to the homeowner, prior to the home entering foreclosure.
We know that the process of foreclosure can be stressful and scary, but by admitting hardship early on, you will find you have more options. Our friends at the Minnesota Homeownership Center specialize in working with underwater homeowners. Reach out to them if you think you may need help navigating these tough waters.
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