Foreclosure in 92069>Question Details

Teresa, Home Buyer in Florida

Can a house be listed as a short sale and a foreclosure at the same time.?

Asked by Teresa, Florida Thu Dec 16, 2010

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Lela Hankins’ answer

A home may be in the foreclosure process while it is listed a short sale. For example, if a Notice of Default is filed, the seller has 90 days before the next step in the foreclosure process can occur. If, after 90 days, they have still not become current on payments, the lender may file a Notice of Sale for 20 days down the road. In actual practice, that timeline is often extended by moratoriums and agreed postponements. So yes, a home may be listed as a short sale, and yet in the midst of a foreclosure process. Once it is foreclosed and "sold on the courthouse steps" though, any short sale attempts are terminated.
1 vote Thank Flag Link Thu Dec 16, 2010
I wrote a blog about "Finding Foreclosed Homes on Trulia" just last week. I'll put a link in the web reference. That should answer all of your questions.

J.R. Thrasher
0 votes Thank Flag Link Wed Sep 11, 2013
No, in a short sale, there is a owner, and a Foreclosure is also called REO, and is bank owned,
and Just because it is a short sale or a REO does not make it a good deal,
0 votes Thank Flag Link Mon Apr 1, 2013
Your property is in foreclosure when the trustee send you a notice of default. This can be taken care of in several ways. One way is the short sale process where the bank agrees to accept less for the home than what is owed on the loan. This is difficult for the homeowner because you don't know what can happen. We are DRE certified to help homeowners with Preforeclosure Coaching. After 30-40 minutes you will be informed about your options, the timeline, and solutions the you may want to pursue. Best of luck to you.
0 votes Thank Flag Link Fri Dec 17, 2010

As Lela mentioned, FORECLOSURE IS THE PROCESS. DIstressed properties actively for sale are either a "short sale" (in some stage of the foreclosure process - which still involves the seller but requires lender/bank approval), or Bank Owned/REO (Real Estate Owned) which is a home that has been foreclosed on completely by the bank/lender. The homes that have been foreclosed on are taken back by the bank or often sold at auction and can be purchased by investors as well, so you may see them referred to as "Corporate Owned" or "Investor Owned". It is best to consult your REALTOR when making offers on distressed properties as there are different issues and risks with each type of sale. It is very important that consumers be educated in these types of purchases.

Kind Regards,
Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
0 votes Thank Flag Link Fri Dec 17, 2010
No...with a short-sale the seller is still the owner of the property. On a foreclosure, the bank owns the home.
0 votes Thank Flag Link Thu Dec 16, 2010
No. In a short sale the owner of the property and his lender are involved with the sale. (the owner initiates the listing agreement) In as foreclosure the bank has taken possession of the property and offers it up for sale via the listing agreement.

All the best,
Gary Geer
0 votes Thank Flag Link Thu Dec 16, 2010
Hello Teresa, with a short sale the recent owner stil owns the property but in a foreclosure the bank now owns the property; the answer is NO, a property cannot be correctly listed as both.

I hope this helps you.
0 votes Thank Flag Link Thu Dec 16, 2010
No ,the home owner may be going thru the process of forclosure.but if a short sale has been opened by the bank and approved,forclosure usually will stop AS LONG AS there is a good communication between the agent handling the short sale and the bank.
0 votes Thank Flag Link Thu Dec 16, 2010
No. But it may appear that way. Foreclosure trumps short sale.

Joan Wilson
Web Reference:
0 votes Thank Flag Link Thu Dec 16, 2010
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