A North Carolina borrower broke a federal foreclosure prevention plan in the past 12 months. Does this failed plan qualify for an exception to the state rule’s foreclosure pause during a pending loss mitigation request?
Correct Answer
C) An exception: the servicer may proceed despite the pending request
The bar does not apply if the borrower has failed to comply with the terms of a loss mitigation plan within the previous 12 months where the plan was implemented pursuant to a federal or state foreclosure prevention program, including the Home Affordable Modification Program. Other choices: the exception is one of five; no permanence condition appears; and no payment count is specified. Source: 04 NCAC 03M .0703(a)(1)(A)
Why This Is the Correct Answer
The bar does not apply if the borrower has failed to comply with the terms of a loss mitigation plan within the previous 12 months where the plan was implemented pursuant to a federal or state foreclosure prevention program, including the Home Affordable Modification Program. Other choices: the exception is one of five; no permanence condition appears; and no payment count is specified. Source: 04 NCAC 03M .0703(a)(1)(A)
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