Foreclosure in 12061>Question Details

Jan, Home Buyer in 12061

Can a bank continue with and foreclose on a porperty which is in the middle of a sale?

Asked by Jan, 12061 Mon Apr 19, 2010

My husband and I placed an offer and received acceptance on a house in a rural community here in Idaho. The bank took 2 weeks to tell us what the mortgage payoff was and we found out it was going to have to go short sale. All of the paperwork the bank needed from me as well as from the homeowner was in place last Monday and we were all waiting to hear whether or not the bank would accept the short sale, then Friday, boom, we get a call from our realtor telling us the bank foreclosed on the house that day. I am still trying to determine if they posted all the required legal notices and whether or not they have already had the auction, but cannot find out anything on my own. I realize I still have a shot at the house, but want to know if the bank can really do that? The offer had been in place as accepted since March 17th and they foreclose on April 16Th and no one had a clue they were going to do this! We were told that they had stopped the foreclosure process at that point.

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2
Yes.

It happens all the time.

Banks have two separate departments processing short sales and foreclosures. They proceed along two parallel but separate tracks. The one that reaches the end first is the one that occurs.

Now, sometimes, you can get the two departments to talk to each other, and delay a foreclosure if a short sale is imminent. Other times, you can't.
0 votes Thank Flag Link Mon Apr 19, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
The reality of the situation is that the bank can do whatever they want to do with their property. The only thing that will stop a foreclosure is a COMPLETED short sale packet. Sadly enough if the packet was missing even one small thing (such as a bank statement from the seller) and the foreclosure date arrives, do not pass go, do not collect $200. Have your agent contact the listing agent and see if they have the listing any more. If they do not, that means it's been foreclosed upon. Most likely it was sold to another bank or investor and will be listed for sale again, most likely for a very good price as well as these investors do not like to sit on inventory. You can either move on, or if there is not a lot of inventory in the area you are looking, hold off or try to track down the new seller (not sure how easy this will be but you may ask your agent or attorney if they can help.) to see if they will be putting it back on the market and when.

Best of luck,
DreamTown.com
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Mon Apr 19, 2010
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