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#1899709 - 02/25/14 04:56 PM Foreclosure Sale
leo_bsayer Offline
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Joined: Aug 2006
Posts: 645
The loss mitigation procedures state when a loss mitigation application is received at least 45 days before a foreclosure sale, the bank must review the app and notify the borrower that it is complete or incomplete within 5 days and what additional information is needed, if any.

When it says "foreclosure sale", does it mean the foreclosure sale process, or the actual sell date of the residence?

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Mortgage Servicing Rules
#1899714 - 02/25/14 05:06 PM Re: Foreclosure Sale leo_bsayer
ServicingMgr Offline
New Poster
Joined: Feb 2014
Posts: 13
KY
It is referring to the actual scheduled foreclosure sale date.

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#1899719 - 02/25/14 05:12 PM Re: Foreclosure Sale leo_bsayer
leo_bsayer Offline
Platinum Poster
Joined: Aug 2006
Posts: 645
I've looked for the definition, and can't find it. Can you cite where that is located exactly? It seems this would cause numerous starts and stops to foreclosures in court and aggregate excessive legal fees.

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#1899722 - 02/25/14 05:22 PM Re: Foreclosure Sale leo_bsayer
Cracked Egg Offline
Member
Joined: Sep 2013
Posts: 55
Kentucky
I believe it's Reg X 1024.41(g)

g) Prohibition on foreclosure sale. If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless:

(1) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph (h) of this section is not applicable, the borrower has not requested an appeal within the applicable time period for requesting an appeal, or the borrower's appeal has been denied;

(2) The borrower rejects all loss mitigation options offered by the servicer; or

(3) The borrower fails to perform under an agreement on a loss mitigation option.
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