What does the term "dual tracking" refer to in mortgage lending?

The term "dual tracking" in mortgage lending specifically refers to the practice of simultaneously pursuing foreclosure on a property while also evaluating an application for a loan modification from the borrower. This can create significant challenges for borrowers, as they may feel they are not receiving the full consideration of options available to them before a foreclosure is finalized.

When a borrower submits a loan modification request, they are seeking to adjust the terms of their existing mortgage to make it more manageable. However, if the lender concurrently moves forward with foreclosure proceedings, it can lead to confusion and anxiety for the borrower. This dual process can often be criticized for lacking transparency and for potentially undermining the borrower's efforts to keep their home through a modification.

In contrast, the other options presented do not accurately describe the concept of dual tracking. They may involve different aspects of mortgage processing or borrowing but do not capture the simultaneous foreclosure and modification evaluation that defines dual tracking.