Alabama Foreclosure: What is dual tracking?

Alabama Foreclosure: What is dual tracking?

Alabama Foreclosure: What is dual tracking?This is a term that the mortgage companies have come up with, and they’re very proud of it.

Dual tracking is something they used to do openly with consumers, but now they have to be more careful about it since some rules changed in 2014.

Let’s get into what dual tracking actually is.

Imagine the mortgage company has two train tracks that are parallel to each other.

One track is loss mitigation, and the other train track is foreclosure.

Both of these trains are chugging along, and whichever train gets to the station first wins.

So when you’re getting letters about foreclosure and you call them about it, they’ll say, “Oh, don’t worry about it! We’re doing a modification, so it doesn’t matter!”

It does matter.

If the foreclosure hits before the loss mitigation, then you lose your house.

This practice has been banned under most circumstances since 2014.

However, we still see it happening today.

If you have a foreclosure date, but you’re talking to your mortgage company about doing loss mitigation (which is a good idea), just understand that talking with them and sharing the right documents doesn’t mean that the foreclosure is going to stop.

Now, in your particular circumstance, it may mean the foreclosure should not happen.

Unfortunately, these mortgage companies are very proud of their dual tracking method, and when the foreclosure date comes before the loss mitigation, they’ll tell you that there’s nothing they can do.

So you’ll deal with these crazy circumstances where you’ll be submitting document after document, and they keep saying that they are doing what they can to help you, then you get a letter from them saying, “We reject your loan modification because your house has already been foreclosed on.”

The most important lesson to remember is to protect yourself from dual tracking.

If you have a lawyer representing you, then you need to make sure they are protecting you from it.

You don’t want to be in this unfortunate situation where you think your house will be saved, but then you’re foreclosed on.

If a foreclosure happens illegally, then you need to sue your mortgage company to encourage them to fix it and pay you damages.

If you live in Alabama and you have any questions, feel free to give us a call at 1-205-879-2447.

Or, if you prefer, you can fill out a contact form and we will get in touch with you quickly. 

We look forward to chatting with you!

Thanks for reading, and have a great day.

-John G. Watts

PS — You should consider suing even before a foreclosure to make sure you are treated fairly as is your right under your mortgage.

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