I even seen foreclosures on short sale properties that have been closed, recorded and title given to the new owner. Now thats communication at it's best, way to go short sale and foreclosure departments. Really; I have seen this several times on Maui aloha Jeff
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Yes, the property can be auctioned off despite one or multiple offers. The listing agent or homeowner can get the foreclosure delayed if there is a legitmate short sale offer in process. If you have your offer in with a listing agent that has not done shortsales or is relying on the escrow company to complete the process, your chances of an approved short sale are diminished.....
On Maui you will not be able to stay a foreclosure by showing up at the auction with your purchase contract. The auction proceeding as scheduled is notice that the bank has rejected the short sale offer(s).
I have had several short sales where we delayed the foreclosures for 2 years, with 8 different buyers.
I have had homeowners contact me that were a week away from foreclosure and we were able to get the foreclosure delayed and offers submitted. Ultimately, banks do not want to foreclose.
It comes down to the listing agent, their knowledge, and comittment to complete the short sale. If the listing agent hasn't closed any short sales or has placed the responsibility on the escrow officer, your chances are not so good.
Some lenders never respond
If a buyer and seller have a binding contract to sell the property, that will usually delay the foreclosure auction. Each bank handles things a little differently though, so it all depends on which bank you're dealing with and their procedures.
Purchasing a home by way of a short sale can be very frustrating for everyone. You might want to talk to your agent about this, and even get some legal advice from a lawyer.
Best wishes for a quick sale!
Georgina M. Hunter "Georgie" R(S) e-Pro SFR
Jim Sanders Realty Inc. Paia Maui HI 96779
cell: 808 283-0635
toll free fax 1-888-875-1918
"I want to help you reach your Real Estate goals."