Detroit, MI asked in Foreclosure for Michigan

Q: Why would our servicer close our foreclosure with their attorneys?

We are facing foreclosure, so we applied for a modification & our servicer put the proceedings on hold with their attorneys while a a decision is made. Saturday, my online account showed there was a decision made, but the mod Dept says there hasn't been any decision. I contacted the attorney firm today & they told me that my servicer closed the case with them at the beginning of the month but wouldn't tell me why. Why would they close it instead of place it on hold? Is this good new or bad news?

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1 Lawyer Answer
David Soble
David Soble
PREMIUM
Answered
  • Foreclosure Defense Lawyer
  • Farmington Hills, MI
  • Licensed in Michigan

A: With the current pandemic, if your loan is an FHA or FNMA loan, there is an adjournment of foreclosures for 60 days right now. If the virus still lingers, then I speculate that further mortgage foreclosure relief will be coming. Nothing can happen in the foreclosure process and the lender will adjourn any sale. You need to remain vigilant during this time as the lender does not have to re-notice you for the sale date. But if your loan is a federally insured loan or FNMA, there is a delay. In the meantime, resubmit the modification package. Also, contact the lender one more time- not the attorney and speak with them to confirm that the sale has been stopped. Lenders control the attorney, and not the other way around.

Good luck. Also, you can see more about foreclosures by visiting www.provenresource.com

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