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Will the foreclosure process continue while negotiating a payment workout?   

 

Typically, the lender will continue with the foreclosure process until a mortgage workout is successfully negotiated. There are however many occasions where the proceedings stop once Loan Modification Consultant begins the loan modification negotiations.

Mortgage banks, to their credit, will make every effort to avoid foreclosing on the property that they have loaned money against.

 

It is a situation that is neither in the interest of the bank or their clients and they will make every effort to establish a dialogue with the client in default, and to be as flexible as possible in re-staging payments. If the client is unwilling or unable to make regular payments, then the bank is obliged by law to instigate the process of foreclosure. The entire process can take between three to six months from the first payment default. 

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