According to an article in the Dallas Morning News, the number foreclosures scheduled for next month in the Dallas-Fort Worth area increased by 34 percent from a year ago.
The article said:
“Much of the increase is due to loan modification programs, which have delayed foreclosures from previous months. Almost 6,000 homes are scheduled to be sold at foreclosure next month…”
And some of the foreclosures are reposts from previous months. Many homeowners attempting to avoid foreclosure thorough a loan modification programs are being placed in limbo as mortgage lenders drag their feet in processing the modifications. As we have noted previously, many mortage lenders won’t even respond to borrowers until they are significantly behind on their mortgage payments and even then there is no guarantee that they will receive a mortgage modifications. If after failing to secure a mortgage modification, many homeowners facing foreclosure wait for months before their home is posted for foreclosure sale. And many homes are being reposted repeatedly.
The article continued:
“…fewer than half of the homes set for forced sale each month are actually foreclosed on by the lender. In many cases, the borrower and debt holder reach a new agreement or the foreclosure is delayed.”
Many homeowners who played the mortgage modification game, finally decide to file bankruptcy after their home is posted for foreclosure. The bankruptcy filing abruptly stops the foreclosure and forces the lender to the negotiating table.