Dual tracking: Overview


Dual-tracking duel

What: Dual tracking is a common practice in which a lender continues to pursue foreclosure even though the homeowner is applying for a mortgage modification.

Why: Lenders say the practice protects their investment if a homeowner doesn’t qualify for new loan terms. Consumer advocates say it discourages homeowners and leads to unintended foreclosures.


Limits: A coalition of federal regulators has ordered major banks and mortgage servicers to halt foreclosure when homeowners qualify for loan modifications.

Ban: A coalition led by state attorneys general has proposed prohibiting lenders from starting the foreclosure process if a borrower has applied for a loan modification.

Source: Times reporting