Chicago, IL (PRWEB) February 28, 2011
Whilst most economic analysts agree that the American economy is now in recovery, the nation’s foreclosure crisis continues to wreak havoc on the lives of a lot of homeowners. In 2010, 33 states witnessed an improve in foreclosure rates, with Arizona, Nevada, New Jersey, and Utah reporting the most significant jump in home foreclosures. People are continuing to lose their houses to foreclosure in record numbers. What is most surprising is that several of these foreclosures occurred whilst the homeowner was negotiating with their bank for a loan modification to reduce their mortgage payment. “Banks are employing a loan-modification/foreclosure “dual track” technique which is confusing and misleading. You could argue that banks are punishing property owners who are doing their ideal to save their properties from foreclosure,” states Richard G. Fonfrias, J.D. of Fonfrias Law Group, LLC (http://www.chicagomoneylawyer.com), a leading Illinois bankruptcy and financial rescue lawyer.

Dual track loan modification/foreclosure is when banks simultaneously pursue foreclosure action and loan modification evaluation. The dual-track method has been responsible for accelerating foreclosure for many home owners, including ones who had been directed to spend lower payments in the course of the loan-modification trial period and then were fined for failure to spend the complete amount when the loan modification failed. “It is apparent that the banks want to foreclose and are only going via the motions of loan modification. Usually the homeowner is caught off guard, believing that they are secure from foreclosure since they have made arrangements for loan modification with the bank, but in reality the bank has placed them in a dual track program negotiating for a modification, even though at the exact same time initiating foreclosure proceedings,” says Fonfrias.

Consumer advocacy groups want to finish dual tracking and are outraged with banks and other mortgage investors, like Bank of America, more than dual tracking exactly where thousands of borrowers are losing their houses even though negotiating to reduced mortgage payments. Numerous really feel that homeowners are being tricked by the banks and feel that a lot more wants to be carried out to increase public awareness about the shortcoming of the dual track program and to curtail the questionable practices of some banks servicing delinquent mortgages. Financial analysts have been disappointed with the performance of loan modification applications like the federal government’s Property Reasonably priced Modification Strategy (HAMP) which has completed little to decrease the number of foreclosures. The quantity of mortgage modifications in 2010 actually fell 58% from the April 2009 peak.

“It’s very essential for residence owners taking into consideration loan modification to comprehend how this much less than simple procedure performs and to be fully conscious of all its implications. Banks have been less than forth-coming disclosing information. Totally free foreclosure counseling is obtainable to customers from government-authorized agencies. Several home owners have also lost their houses due to errors created by banks in the course of the convoluted dual tracking method. When this has occurred, it is very hard to reverse a residence foreclosure sale and to repair the harm caused to all parties. Monetary rescue and bankruptcy lawyers are seeing far more of these instances every week,” says Fonfrias.

Get in touch with Details:
Richard G. Fonfrias, J.D.
Fonfrias Law Group, LLC
Very first National Plaza
70 West Madison, Suite 1400
Chicago IL 60602
Phone: 312-969-0730 
http://www.chicagomoneylawyer.com

About Fonfrias Law Group: Chicago’s financial rescue and bankruptcy lawyer Richard Fonfrias of Fonfrias Law Group is prepared to help Illinois home owners in serious economic trouble and shoppers facing mounting monetary debt. With eighteen offices serving Chicago and communities all through Illinois, Florida and California, Fonfrias Law Group provides all types of bankruptcy legal services, tax defense, debt consolidation, negative credit repair, foreclosure defense, credit card debt management, loan and mortgage refinancing tips. To uncover out how Chicago’s experienced financial rescue and bankruptcy legal group can support you, get in touch with 312-969-0730 or inquire on the web. http://www.chicagomoneylawyer.com

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