By Tiffany Hsu, Los Angeles Times
October 9, 2010
Bank of America is freezing foreclosure sales in all 50 states as it reviews its process for handling related documents.
So what does that mean for California homeowners who are in danger of defaulting on the loan or are already in foreclosure?
Here’s a consumer guide:
Q: I’m in foreclosure on my BofA mortgage and have been notified that my home will be sold in a trustee sale. Does the freeze stop the sale?
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Yes, starting Saturday. If your sale was scheduled for Saturday or later, it will be postponed at least until the lender lifts the freeze, said Dan Frahm, senior vice president of Bank of America Home Loans.
Q: What if I’ve gotten a notice that I’m in default on my BofA loan but have not gotten documents declaring that my home is to be sold by the lender?
It normally takes several months, after a notice of default, before a lender schedules a trustee sale with the county. During the freeze, BofA will not be seeking any trustee sales, Frahm said.
Q: I’m behind on my BofA mortgage but have not received a formal default notice. Does the freeze stop the bank from declaring me in default?
No. The bank will continue to track late payments and it will send out default notices in some cases.
Trustee sales could start up again after the freeze is lifted. In the meantime, the bank said it would work with customers to determine whether they’re eligible for other solutions, including mortgage modifications.
Q: What if my home that had a BofA loan has already been sold in a trustee sale to an outside party? Can the freeze reverse this?
No. Past sales will stand, and if you are not already out of the house, you could be evicted.
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