Question on initiating foreclosure

[jer2008]

My loan was with Citimortgage and was sold off to a hedge fund with SLS as the servicer.

I had to start the loan mod process over. They keep telling my I am 8 months late (since it was over 8 months ago that I started this process with Citi)

I had been making citi's trial payments -but I guess those don't count. I have not made any payments to SLS since the loan was sold (it's non recourse and I don't want to throw money away if they won't give me a mod)

So I am now being told that tomorrow my loan MAY start the foreclosure process.

Does anyone know if they are allowed to do this while in the mod process? I have a non-hamp loan and we are waiting on the escrow analysis from SLS. Who decides to start the process -SLS or the investor?

Thanks!!!!!!!

[Evan Bedard]

Does anyone know if they are allowed to do this while in the mod process? I have a non-hamp loan and we are waiting on the escrow analysis from SLS. Who decides to start the process -SLS or the investor?

Hi jer2008.

Most servicers will delay the foreclosure process while a modification is in process. But after a while they can begin foreclosure if they choose to do so. As long as you continue to follow up and pursue a modification they should continue to postpone any foreclosure proceedings.. Many people end up with a sale date, but it tends to get postponed while attempting to work out an agreement with your lender..