Loss mitigation turnaround

Husband and wife contacted me recently to help resolve a potential foreclosure situation on their primary residence. They are over a year in mortgage arrears and failed to answer the summons & complaint served on them on May 1st. To make matters worst, they defaulted a year after having the mortgage modified by the same bank. Time is of the essence because they didn't have substantive facts to restore the case and the bank attorneys were about to file for a default judgment.

I used a two prong strategy. First file for another modification and second delay the foreclosure process while preparing the client to seek the funds to reinstate the mortgage should modification be denied.

Currently, the funds to restore are in the clients' savings and retirement accounts. Should modification be denied, they can request a hardship loan from their retirment plan. I timely answered the attorneys' notice for a default judgment to delay the foreclosure process by 45 days while their application for modifiaction is under review. Meanwhile, I advised them to begin the process for obtaining a hardship loan in order to have adequate funds on hand to pay off the arrears should modification be denied. Well, at this time they're waiting for the modification decision but shoul;d be able to keep their home because the hardship loan should be approved if modification is denied.