Foreclosure in Birmingham>Question Details

Amy Jalili, Home Buyer in Birmingham, MI

Has anyone tried to put in a short sale offer during the recission period on a foreclosure?

Asked by Amy Jalili, Birmingham, MI Thu Jul 24, 2008

Wondering if anyone's put an offer on a foreclosure that's unlisted and vacant during the recission period. The property I have in mind is in Michigan, which has a 6 month recission period on this particular foreclosure. The seller tried for 2 years and gave up, giving it officially back to the lender in April. I'm interested in putting an offer on the property, as I'm hoping the lender (WAMU in this case) will be interested in having someone take it off their hands (that's the logical assumption, but I'm seeing that may not be what they're thinking...)

Was wondering whether anyone's attempted this, and if they have, what they did.... I'm not sure who to call first, the buyer, the seller, the prior listing agent, etc... I'm assuming the lender will just ignore me from what I've read online... and the seller, I have no idea how to get in touch with them... any help would be much appreciated.

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5
Amy,

Have your agent call the former listing agent. I strongly suggest you have your own buyers agent because foreclosures and REO's are a lot more intricate and have many more pitfalls than a traditional retail transaction.

During the redemption period you really need the sellers cooperation. The bank cannot do anything to accept your offer without the seller signing off.

Please get representation.

Worst case, your agent can try contacting WAMU so they know you are interested in buying AFTER the redemption period is over.
Web Reference: http://mioaklandcounty.com
1 vote Thank Flag Link Sat Jul 26, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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Yes, I have bought two properties in the last year that way. At first I thought it could not be done after the sherriffs sale but then I figured out a new approach and it worked. Call John @ First Financial Resource 616-299-0757
1 vote Thank Flag Link Fri Jul 25, 2008
Amy,
Talk to a real estate attorney on that one, but I think you're SOL for now. A short sale is negotiated with the seller then presented to the bank. As the property is in the redemtion period following foreclosure, I don't beleive a short sale is an option. I think the bank needs to wait out the 6 month period before getting the courts to declare the home abandoned so they can take posession then sell it.

Technically, if you could contact the prior owner you could pay off their redemption (missed payments plus interest, penalties, etc) and get the house out of foreclosure THEN pursue a short sale, but there are no guarantees and thats a big leap of faith.

So my guess is you probably need to just wait it out or look at other properties

Tony
1 vote Thank Flag Link Thu Jul 24, 2008
the seller needs to relinquish their redemption rights before the bank can take ownership, that means signing documents or waiting out the 6 months. Until it is and REO and bakc with the bank you can not put in an offer unless the owner agrees to it. in the redemption period, the owner STILL owns the rights to sell it. i would approach the owner/seller...it needs to be listed to do a short sale (and it is still called a short sale during the redemption period) and you also need to determine if the current loan is an fha loan, if it is than it MUST be occupied to qualify for a short sale.
0 votes Thank Flag Link Wed Aug 3, 2011
good morning....the owner still owns the home during the 6 month redemption period...and can still sell it to you....a payoff for the sheriff's deed is required for the title company.if the home is abandoned, then the lender can file an adandonment affidavit and the redemtion then runs 30 days from the date of the certicate of abadonment being recorded...if it runs the 6 months course...it would then automatically deed to the lender..... hope that helps....bob mcclure- mortgage now- farmington, michigan
0 votes Thank Flag Link Sun Jul 27, 2008
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