If you are current at the time you refuse the
loan modification they can not initiate foreclosure proceedings, however if you are delinquent and depending on the degree of delinquency, yes they can. How rapidly, unknown, will they continue to work out the situation, unknown. But it is my firm belief that they are being more and more cornered by this mess and sooner or later they are all going to have to come to the table and give up to the fact that they need to Modify reasonably and compassionately. When, unknown, we have never seen this kind of chaos in industry wide and nation wide except in the Great Depression. The difference now is that all of this money is tied in Globally and it is affecting the National Banks of other nations.