Legal Question in Real Estate Law in California

Answer is "yes" and I can think of at least two things you can do.

First is to keep after the lender, politely but frequently, with questions about "How are things going?" and "What information do you need now?" Lenders have piles and piles of pending loan-modification requests and way too few well-trained people to handle them. The squeaky but cooperative wheel gets the grease.

The second thing is to keep a realistic set of expectations. Not every defaulting borrower is going to get a loan modification. The lender wants to know that (a) without the modification, they'll have a big loss from an under-water foreclosure, and (b) with the modification, this borrower will pay off this loan with a lesser overall haircut taken by the lender.

They do modifications because they reap a benefit, not because they're nice guys.

BTW, three months behind is not very much by current standards. You may not have even been defaulted yet.

As this is an area where we have some expertise from our experience your situation is not uncommon. The Banks are doing a lousy job of doing modifications, and have totally defrauded the American public. The Bank will continue their foreclosure efforts even though you have e submitted an application. Basic rule is that once they file a notice of default they will be able to sell your house in approximately 110 days. The key question here is where they have filed a notice of default or not. That starts the time running.

As to your loan mod if your mortgage payment ( which is taxes insurance principal interest and HOA fees if any) would be cut to 3 to 4 % ,would that payment be equal to approximately 31% of your gross monthly combined household income. If it is at 31% to 38% then they should modify your loan if it is much higher then you should be looking at moving. Also to qualify under the Obama program your mortgage should be less than 730K.

These are rough guidelines.

So what should you do? First I could constantly check with your lender, call them every two weeks. I might consider hiring an attorney if they filed notice of default, and I would also contact your legislator both state and federal and complain as to why it is taking so long.

Hope this helps and good luck.