I agree, I haven’t seen anything that would indicate you have an exception from 120 day rule for this type of situation. There are two reasons that foreclosure could begin sooner:
1) The foreclosure is based on a borrower’s violation of a due-on-sale clause; or
2) The servicer is joining the foreclosure action of a subordinate lienholder. [Note: As amended by 9/13/13 final rule.]
Another option is possibly a deed in lieu of foreclosure, but you would need to consult with your attorney on your options and best course of action.