Can a sheriff’s sale happen if you are working with your bank on a loan modification?

UPDATED: Aug 30, 2011

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Can a sheriff’s sale happen if you are working with your bank on a loan modification?

We were working with our bank on a loan modification and they lost some of our paperwork and in turn declined our modification. We were not notified until the bank’s lawyer sent us a letter stating that our home is scheduled for a sheriff’s sale in 2 months. The bank’s response was to start the modification process over. Can they continue with the sale if we are working something out with them?

Asked on August 30, 2011 Wisconsin


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you have been working with a lending institution for a loan modification where you have not been making your payments on your home, and the paperwork was lost by the lending institution, nothing prevents it from commencing a sheriff's sale for the foreclosure of the property in the interim.

Many times the threats of such a foreclosure sale are done as a means to push to homeowner to try and get matters in order sooner for a loan modification or place the property on the market hoping for a "short sale".

The problem with working with a lending institution on a loan modification is that there are so many requests for such that the people assigned to assist cannot put the time and effort to get  these applications done in a timely manner.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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