Can My Bank Still Foreclose While I am in a
Trial Loan Modification?

Yes.

If there is a Trustee's Sale Date scheduled, you should assume that the Trustee will sell the property on that day. Until you have it in writing that the foreclosure sale is either cancelled or postponed, you should assume that the foreclosure sale will still take place.

Banks frequently sell properties when there is a trial or provisional loan modification in place. In my understanding, the loan modification and the foreclosure departments in most large banks don't talk to each other very often.

The only way to REQUIRE the cancellation or postponement of a foreclosure sale is to file a chapter 7 or chapter 13 bankruptcy. Filing a bankruptcy will (in the short run) virtually always stop a foreclosure sale. Many times banks will continue the sale date to see if you stay in the bankruptcy system. For example, if you fail to show up for your required bankruptcy hearing, your case might be (probably will be) dismissed, and if the bank has continued your sale date and has not cancelled it, they will not need to start the whole foreclosure process over again.

Do you want to be in the driver's seat calling the shots or do you want to rely on your bank? Your choice but I know what my answer would be.

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The Law Office of Matthew D. O'Conner is dedicated to helping clients file bankruptcy while retaining their dignity and pride. We provide assistance, legal counsel and advice and will be able to answer your bankruptcy-related questions and help you file a Washington bankruptcy.

Contact us today at (206) 782-0722 for a free consultation - it's entirely confidential.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

This web site is for general informational purposes only and is not legal advice.

The information contained on this web site is in no way intended as a substitute for legal counsel, and your receipt of the information does not give rise to a lawyer-client relationship between Matthew D. O'Conner and you. The ramifications of the law for any particular situation depend on a variety of factors, so you should seek professional legal counsel before acting upon any information contained on this web site.