Banks are foreclosing while homeowners pursue loan modifications

[azurnoir]

Mortgage lenders call it "dual tracking," but for homeowners struggling to avoid foreclosure, it might go by another name: the double-cross.

Dual tracking refers to a common bank tactic. When a borrower in default seeks a loan modification, the institution often continues to pursue foreclosure at the same time.

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On Wednesday, federal banking regulators issued settlements with major banks and home-loan servicers that would, among the many provisions, stop foreclosure once a homeowner is approved for a temporary mortgage modification. In ordering the changes, the regulators said they found "critical weaknesses" in the way the lenders handled foreclosures.

The settlements drew immediate fire from activists who said they did not go far enough, particularly in addressing the two-track foreclosure process. A separate coalition of state attorneys general and federal agencies including the departments of Justice, Treasury and Housing and the Federal Trade Commission is still negotiating details of a foreclosure-system overhaul that could include a near-ban of the practice.

http://www.latimes.com/business/la-fi-dual-tracking-20110415,0,7480260.story

[sakabatou]

1. They're still pulling that shit?

Damn.