(c) If a borrower submits a complete software getting an initial lien loan modification offered by, otherwise compliment of, the newest borrower’s financial servicer, a mortgage servicer, mortgagee, trustee, recipient, or subscribed representative shall not record a notification out-of default otherwise notice of business, or run a good trustee’s sale, because the done very first lien mortgage loan modification software is pending. Home financing servicer, mortgagee, trustee, recipient, or signed up broker should perhaps not record a notification out of standard otherwise notice of selling otherwise carry out a trustee’s sale until any kind of the second occurs:
(1) The borrowed funds servicer makes an authored dedication your debtor is maybe not qualified to receive a first lien loan mod, and you may people notice period pursuant so you’re able to subdivision (d) have expired.
(d) In the event your borrower’s software getting an initial lien mortgage loan modification is denied, the debtor will possess at the least a month from the date of authored denial so you’re able to focus the denial and to render evidence that mortgage servicer’s determination was a student in mistake.
(e) In the event the borrower’s application having an initial lien mortgage loan modification is actually refuted, the mortgage servicer, mortgagee, trustee, recipient, otherwise registered broker shall perhaps not list a notice away from default otherwise, if the a notification off standard had been submitted, listing a notice off business otherwise make an excellent trustee’s business until brand new later of: