application is deemed to have been submitted more than 7 business days before a scheduled foreclosure sale. (iii) Treatment if a foreclosure has been initiated but no sale scheduled For purposes of clause (i), if a foreclosure has been initiated at the time of the mortgagor’s initial application for affordable loan modification assistance, but a foreclosure sale has not been scheduled, then an initial application is deemed to have been submitted more than 7 business days before a scheduled foreclosure sale. (B) Foreclosure proceedings permitted Notwithstanding subparagraph (A), a servicer may initiate or continue a judicial or nonjudicial foreclosure under State law against a borrower, if— (i) the servicer— (I) determines that the borrower is not eligible for a modification