“Dual-tracking” is when a homeowner applies for a modification of his mortgage and a bank pursues a foreclosure at the same time. Maybe that process needs a little tweaking. From HuffingtonPost.com:
Officials said they are considering changing current policy by agreeing with banks to halt foreclosure proceedings when borrowers first apply for loan modifications and provide basic information. Today, banks halt the process of repossessing a borrower’s property once banks deem the applications complete, a process that can take months. During that time, foreclosure proceedings generally continue.
Talks are fluid and the legal language that would accompany a change is still being sorted out, officials said.
But the change, if implemented, may further reshape how mortgage companies interact with distressed borrowers. For years, officials and borrower advocates have complained that the largest banks frequently string borrowers along for months by repeatedly requesting documents — often the same batch of records — before determining that the application is complete and evaluating them for modified loans. During this time, late fees and other charges rack up, ballooning the total amount owed, making a modification more difficult to achieve and pushing troubled borrowers into foreclosure.