When times are tough, you may have trouble affording mortgage payments. You might submit a loan modification application to your lender to revise your mortgage terms and make this loan more affordable during your period of financial hardship. But what if your lender continues the foreclosure process while reviewing your application?

This is considered dual tracking, and it is restricted under federal law. A foreclosure lawyer in Ohio can help you understand your options.

How Dual Tracking Happens

When you miss several mortgage payments in a row, your lender may initiate the foreclosure process. This would ultimately allow them to seize your home and sell it to pay off your mortgage, but it is a lengthy process during which you have opportunities to settle the loan.

For example, you may be able to apply for a loan modification through the lender to potentially lower interest rates, extend repayment terms, and make the loan more affordable. Dual tracking is the practice of the lender continuing foreclosure proceedings while also reviewing your loan modification application.

Why Dual Tracking Is a Problem

You may feel like you’re moving toward a solution by applying for a loan modification, but if your lender practices dual tracking, the risk of losing your home would remain. This overlap causes confusion, and in many cases, it goes against how foreclosure works.

Loan modification and foreclosure dual tracking can result in a home being sold before the lender finishes reviewing the application. This leaves little room to correct errors or provide additional documents, which is why federal law prohibits this process.

Still, it creates unnecessary stress. You might miss communications or have unclear timelines, which makes it hard to make informed decisions. In short, how dual tracking affects homeowners often comes down to lost opportunities and less control.

Laws and Protections for Homeowners

Now that we’ve answered, “What is dual tracking in foreclosure?” it’s time to see what your options are. Foreclosure dual tracking laws have been introduced to address this issue.

Federal regulations now require servicers to review complete loss mitigation applications before moving forward with certain foreclosure actions. Specifically, under the Real Estate Settlement Procedures Act, if a complete application is submitted more than 38 days before a foreclosure sale, the servicer cannot conduct the sale.

Even with these safeguards in place, violations can still happen. That’s why it is important to stay organized, keep records of all communications, and respond promptly to any requests from the lender.

What Homeowners Can Do

If you have submitted your application for loan modification and your lender is continuing with the foreclosure process, consult an attorney about your rights and options.

They can review the situation, identify potential violations of federal dual tracking laws, and potentially stop improper foreclosure activity.

Moving Forward With Confidence

This answers the question, “What is dual tracking in foreclosure?” Now it’s time for your next steps.

If you want guidance tailored to your situation, call Cozmyk Law at (877) 570-4440. Our team can tell you the things to know about loan modification and protect your rights.