How to Answer a Summons While Working on a Loan Modification

Answering a summons while negotiating a loan modification is stressful. If related, the two events could determine if you keep your home or lose it to foreclosure. A foreclosure summons is the notification of a lawsuit for unpaid mortgage debt, with the lender seeking to take possession of your home. A loan modification can refinance the loan to make it more affordable and resolve missed payments. A summons for an unrelated debt, such as credit cards, does not affect loan modification for a mortgage.

Instructions

1

Ask the lender to withdraw the lawsuit. There may be poor communication in the lender's organization if the lender is discussing a loan modification and filing a lawsuit at the same time. However, the lender may have decided not to agree to a loan modification and instead is proceeding with a foreclosure summons. That would make your attempts at working on a loan modification a moot point because the modification simply cannot happen without the lender's cooperation.

2

Hire a real estate attorney with experience in loan modification and foreclosure avoidance. You have too much at stake to attempt handling this on your own. Loan modifications are sometimes complex, and so is the legal system. If you cannot afford an attorney, contact charitable organizations such as the Legal Aid Society. The agency may represent you for free or refer you to an attorney charging a reasonable fee. Also contact charitable organizations such as the United Way or a local chapter of the National Urban League for help finding an affordable attorney.

3

Pay the missed payments to end the foreclosure threat. Sell a second car, home furnishings or just about anything else to raise money needed to bring the mortgage current. Ask your church or place of worship for help, if necessary. Call your lender after you've made the payments and ask the lender to withdraw the foreclosure summons. Then continue to work on the loan modification without the threat of imminent foreclosure.

4

Respond to the summons no matter what, or have your attorney file a response, which is called an answer. At a minimum, seek legal advice from an attorney on how to answer the summons. Procedures for answering a summons vary by state. Failing to respond to the summons could lead to a judge ordering foreclosure. If you are proceeding without an attorney, read the summons and follow all deadlines for providing information requested by the court.

5

Call the Homeowners Hope Hotline for help on persuading the lender to modify the loan. A national nonprofit organization, Hope Now, operates the hotline 24 hours a day.