What? Doesn't a modification or short sale application stop a foreclosure. Well no, it doesn't. It may stall the gavel, or it may not even do that.
As soon as you agree to do a modification, the foreclosure process begins. Unless your modification is to make your loan payment higher. But lets just say for argument sake that you are trying to get your payment reduced. Well what happens to the differnce between your reduced payment and your original payment? Very simply the Mortgage companies use this "deficit" to start the FORECLOSURE clock ticking. This is also when they start to damage your credit, the day you agree to a trial modification, and in my case the day I called about it, they randomly reported me as late when I wasn't (I did get them to correct that but excuse my french, WTF?)
So every month that they stall giving you an answer, they get to keep moving that foreclosure clock closer and closer to the Sheriff's desk.
If they actually gave you a permanent modification after the 7-18 months in which they tortured you with their game of lost and found documents, at least you could look at the terms and make a rational decision. They don't do that however. They tell you some ridiculous thing about needing to "test you" for 3 months.
HELLO? WHAT GENIUS CAME UP WITH THIS?
So now after 7,8,9,10 more months in a "3" month trial, your credit is trashed, you "owe" the banks thousands, you can't go back, you can't go forward, because they still keep saying your loan is under review.
Wait it gets better. They ask for updated bank Statements. When they see that your bank account is empty they decide it is time to decline your "trial" and demand repayment of the thousands of dollars, plus late fees and penalties. And you better have a secret stash to pay that off in 30 days, or guess what?
Time to foreclose, because as I said, they have been working on your foreclosure while you foolishly send all your silly trial payments in on time, thinking that this was a real program.
After all the government started it? Shouldn't we trust the government?
You tell me?