For years, banks of all sizes used this unscrupulous technique to foreclose on individuals and families. The playing field has recently been leveled by the California Homeowner Bill of Rights, however, which very clearly condemns the practice of dual tracking.
The same basic story has played out thousands of times in California alone. You purchase the home of your dreams. You dutifully pay your mortgage as expected. After a time, the unexpected hits: a medical event, the loss of a job, a drastic change in your financial picture. Suddenly, your regular mortgage payment is no longer affordable. Does this mean you are suddenly no longer entitled to live in the home that you have worked for so diligently?
Of course not. This precise scenario is why options such as loan modifications and homeowner programs exist in the first place.
Your lending institution, however, probably doesn't feel that way.
To them, you are not an individual with a very unique and human set of circumstances. You are a line item on a profit/loss statement, a variable in a risk analysis portfolio, and thought of in stark terms as either an asset, or a liability.
This mentality is how "dual tracking" arose as a primary tactic of lenders across the United States. Dual tracking describes a scenario where your bank "considers" your loan modification application, while simultaneously proceeding forward with the intention of foreclosing on your property. It is, quite simply, a feigned willingness to work with you, while behind the scenes they prepare to cut their losses and foreclose on you regardless of the loan modification's outcome.
Although dual tracking was explicitly made illegal by the California Homeowner Bill of Rights, many lending institutions still practice this method while counting on the fact that homeowners are not aware of their rights.
At JT Legal Group, we have successfully litigated on the grounds of unlawful dual tracking for hundreds of clients. And we're ready to fight for you and your home next.
-- Michael Avanesian, Esq.
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