Can a sheriff’s sale happen if you are working with your bank on a loan modification?
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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
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 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.
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