Question Details

Kawain Payne, Real Estate Pro in Seal Beach, CA

Can I loose my home to foreclosure while trying to negociate a short sale?

Asked by Kawain Payne, Seal Beach, CA Sat Mar 31, 2012

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Yes, it is possible since a short sale or any other workout option such as loan modification, does not guarantee a Foreclosure postponement. From my experience, if you start the process at an early stage it would be easier to get a a Foreclosure sale date postponement if the file is already in process. Many people want to start the process when they already have a Foreclosure sale date and because of this, Banks are starting to become more strict on their guidelines. Lenders such as Wells Fargo, Indymac and Chase want to see the file already in their system 10 days prior to the Foreclosure sale date, other wise they will most likeley decline a postponement and will move forward with the Foreclosure sale. In those cases we use an attorney and have been successful at postponing it and closing the short sale, but it is not guaranteed.
0 votes Thank Flag Link Sat Mar 31, 2012
Yes! The bank's short sale and foreclosure departments are usually independent of each other and run in parallel. The department that reaches the finish line first wins.

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
0 votes Thank Flag Link Sat Mar 31, 2012
Sadly yes, Banks have a practice called "double tracking".

This means they foreclose on a property at the same time the homeowner is pursuing a short sale.

If the short sale process takes too long, the home may very well be lost to forclosure.

Some believe double tracking can be avoided if the bank's foreclosure department and lost mitigation departments would simply communicate with each other.

If you are working with your bank's lost mitigation department, please request that they communicate with the foreclosure department!
0 votes Thank Flag Link Sat Mar 31, 2012
Yes you can still lose your home if the trustees sale happens before your short sale is completed. Even if you're in negotiations with your short sale of your home the trustees sale will still happen unless they extend the date. That will all be up to the lender.
0 votes Thank Flag Link Sat Mar 31, 2012
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