Can NOD be filed while loan mod process is in progress?

It is true that if you're going through the process of loan modification, then the lender cannot file a Notice of Default (NOD) against you unless he has rejected the request. You should contact your lender in order to find out whether or not he has rejected your request for loan modification.

Moreover, it is always better to negotiate with the lender yourself regarding loan modification. There is a high chance that the lender will accept your request if you negotiate with the lender directly for modification.

Anna, I too would believe that it's not right for a lender to file an NOD before rejecting the loan modification request. But, is it possible that a lender can file NOD when the borrower is not aware of his rejection?

There are chances that the lender can file NOD when the borrower is not aware of the rejection of loan modification. Maybe the lender have send you the rejection letter in mail and before the mail reaches you, he files for NOD.

It happens all the time.....loss mitigation has modification papers and the NOD is filed....I know several people it has happened to. Most mortgage companies are so back logged right now the right hand doesnt know what the left one is doing. Even doing the mod in house doesnt stop it.