Unfortunately, your situation s all too common. One of the reasons that this is happening is that loan modification and loss mitigation are often completely separate departments and don't speak with each other at many lenders. I have had clients tell me that they received e-mails telling them they had been approved for modification only to find out that a foreclosure sale had been scheduled.
Often, borrowers ignore letters from the bank concerning the foreclosure because they erroneously believe that the modification efforts they are discussing with the bank puts the foreclosure on hold. This a big mistake. Even if you believe that the lender is negotiating in good faith and that modification is imminent, it is best to take all communications concerning foreclosure very seriously.
I do not practice in Florida so this response is offered as general information and not as specific legal advice.
Yes, it happens all the time. The Loss Mitigation Department and the Foreclosure Department are two completely disctinct entities, and have ljttle or no communication with one another. To make matters worse yet, they havre completely separate goals - the Foreclooure Department's job is to get the foreclosure completed as quickly as possible.
BEWARE ! No matter what the loss mitigation department tells you, DO NOT IGNORE THE FORECLOSURE. The modification process can take months, at the end of which your request may be denied, or even if approved, it may not be anything that is even useful to you by way of reduction. To make matters worse, it is commonplace for the people in loss mitigation to tell you that you do not need to defend the foreclosure or to get an attorney, THIS IS NOT TRUE. They are not attorneys, do not understand anything about the law, are not qualified to give legal advice, and are not obligated to YOUR interest anyway.
You need an experienced foreclose defense attorney. That is what we do. If we can help you, our contact informatino is on our website, www.golantlaw.com