Can foreclosure move forward while a TPP case is pending?

Can Foreclosure Move Forward While a TPP Case is Pending?

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. Meanwhile, a Trial Period Plan (TPP) is a temporary agreement that allows homeowners to make reduced mortgage payments while their loan modification eligibility is being evaluated. So, can foreclosure move forward while a TPP case is pending?

**The simple answer is no.** According to the Consumer Financial Protection Bureau, once a homeowner is accepted into a TPP, the lender should halt any foreclosure proceedings. The purpose of the TPP is to give homeowners a chance to save their homes by demonstrating their ability to make modified payments.

If a homeowner has entered into a TPP, the lender is legally required to give them time to complete the trial period and provide all necessary documentation. This means that foreclosure cannot move forward while a TPP case is pending.

FAQs about Foreclosure and TPP Cases

1. Can a lender start foreclosure proceedings while a homeowner is in a TPP?

No, once a homeowner is in a Trial Period Plan, the lender should pause any foreclosure actions.

2. What happens if a lender tries to foreclose while a TPP is pending?

Homeowners should contact a legal expert or housing counselor immediately to address the situation.

3. How long does a TPP typically last?

A Trial Period Plan usually lasts for three to four months, during which homeowners must make all required payments on time.

4. What happens after the TPP ends?

If homeowners successfully complete the Trial Period Plan, they may be offered a permanent loan modification.

5. What if homeowners are unable to make TPP payments?

It is crucial to communicate with the lender to explore other options or modifications to the TPP.

6. Can homeowners apply for a loan modification while in a TPP?

Yes, homeowners can submit a loan modification application during the trial period.

7. What if homeowners receive a foreclosure notice while in a TPP?

Homeowners should reach out to their lender immediately and provide proof of participation in the TPP.

8. Is it possible to enter into a TPP more than once?

In some cases, homeowners may be eligible for a second Trial Period Plan if they were unable to meet the requirements the first time.

9. Can homeowners continue making TPP payments after the trial period ends?

It is advisable to follow the lender’s instructions and wait for further communication regarding next steps.

10. What if homeowners’ financial circumstances change during the TPP?

Homeowners should inform their lender of any significant changes in their financial situation to see if additional assistance is available.

11. Can homeowners cancel a TPP before it ends?

Yes, homeowners can choose to opt-out of a Trial Period Plan if they decide it is no longer the best option for them.

12. Are homeowners allowed to sell their property while in a TPP?

It is advisable to consult with a legal expert before making any decisions about selling the property while in a Trial Period Plan.

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