For one thing, they can’t foreclose when an application for a loan mod has been submitted, and they’re required to try to modify.
Betting that the borrowers can tie things up in the “loan mod” stage a long time, and with no threat of foreclosure to push them to cooperate with the bank, they can live basically for free while the mod is in process.
For another, the “single point of contact” rule may require structural changes in the lending departments of the big banks, and those take time.
This is unlike in NJ where it takes a while for foreclosure cases to make it to court, but once they do, if the judge sees a history of non-payment, he’ll allow the sheriff’s sale to go ahead. Attempted modification or not.
