A South Florida man was in the process of a loan modification with JP Morgan Chase; while unknown to him the bank was continuing the process of foreclosing on his home at the same time! On Tuesday, the Court vacated the judgment after the sale of the home and therefore the title must be placed back in the hands of the original owner.
This is a new method most banks seem to be taking: proceeding with loan modifications while beginning to process the foreclosure in case the modification does not workout.
This technique is added to Chase's current approach of asking homeowners to sign waivers stating they will not sue the lender if the home is auctioned off while in negotiations for modification.
Although things worked out for this homeowner, we have seen many cases where the home is sold while the homeowner believe they are in negotiations with the bank. Often the banks will tell the homewowner that nothing will happen while they are working on a loan modification.
Because of this it is suggested that if you are in foreclosure you should contact a local Florida Foreclosure Defense Lawyer or Jacksonville Foreclosure Defense Lawyer today to review your foreclosure documents today.
