HOBR: What is Dual Tracking?

What is Dual Tracking?

The California Legislature wants to prevent servicers from dual tracking, the practice of evaluating a borrower for a modification while simultaneously proceeding with a foreclosure.

If the borrower has submitted a complete loan modification application, HBOR prohibits the servicer from “recording” an NOD or NTS, or “conducting” a foreclosure sale.

Courts disagree on the meaning of this statutory language. Regardless of whether postponing a sale is considered “conducting” a sale, however, injunctive relief based on dual tracking claims is still possible when the sale has been postponed.

Dual tracking has unfortunately become common practice by many banks rushing to foreclose on their asset while disregarding the home owners rights.

In order to immediately stop a sale of your home, your attorney must be able to successfully make a motion for a Temporary Restraining Order in your county. This includes the Los Angeles County, San Bernardino County, Marin County, San Mateo County, Santa Clara County, and Napa County. While each county has particular local rules differing from jurisdiction to jurisdiction.

However one thing is certain, in order to stop a foreclosure sale your attorney must either make a motion for a Temporary Restraining Order (TRO) in order to prevent the bank from conducting a foreclosure sale or file for bankruptcy.


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