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Is it against the law for a lender go through with a sheriff sale while working on a modification?
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typically, once a loan is in review for a workout a status is placed on the account putting the foreclosure on hold. This allows negotiators the opportunity to review to see what type of a workout to allow.
You must remember lenders are the ones offering the help it is voluntary and they do not have to offer loss mitigation. So a lender can foreclose but it is usually not in their best interest.
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