If I am working with a home specialist trying to get a loan modification with my mortgage company, can the lender still sell my house?

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If I am working with a home specialist trying to get a loan modification with my mortgage company, can the lender still sell my house?

Asked on March 12, 2012 under Real Estate Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The mortgage company is not bound by anything  the home specialist does or says unless and only if the home specialist is an employee of the mortgage company and makes representations or promises within the scope (or at least the apparent scope) of  his or her authority. Therefore,

1) If the specialist is not an employee, the mortagage company can clearly foreclose on and sell your home if you're in default; and

2) Even if the specialist is an employee, unless he or she actually states that the foreclosure or sale will be halted while working things through with you (and no more senior person contradicts or rescinds that statement), the company can still foreclose and sell--a mortgage lender is allowed to continue with foreclosure or other legal action even while talking to/negotiating with you, unless (as noted) it specifically represented that it would not.


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