It is a possibility. Many times with the banks the right hand doesn't know what the left hand is doing. Do you have a Trustee Sale date (foreclosure date)? If you do but you are in the middle of a modification just keep on them and make sure that they have postponed the date in order to allow for the modification. If you don't know if you have a foreclosure date feel free to call or email me and I'll look it up for you.
If there is anything else I can can do to help, please feel free to call.
With Your Success in Mind,
Keller Williams Integrity First Realty
Realtor - Former Attorney
First Weber Group
Certified Distressed Property Expert
Make sure that all parties are aware of what you are doing! Lender with loan remodification and your current lender and or any agents or attorneys involved. Also get it documented! As long as all parties are involved you should be o.k however cover your back, and also request the foreclosure be postponed and request documentation, always, always!