1. If you have already asked for a short-sale, and for some reason you could not get an offer, or the buyer backed out. As mentioned by Craig, you should talk to the Bank or get your Realtor to talk to the Bank and ask for a postponement.
2. If you are declined a loan-mod and the Bank has decided to go through with a foreclosure.
Contact a lawyer to try to postpone the foreclosure. E.g. filing a BK chap 7 or 13 will immediately postpone the foreclosure. Of course, you have to discuss with a lawyer what the ramifications are, etc. Pose your question at http://www.lawguru.com. You can get some free advice there. Reopen the loan modification, and you may consider using a bonafide loan modification company. They will never ask for money upfront but must get paid in the rear (if successful only) by law.
3. If your house sells at the auction, then depending on the starting bid, if it is low enough, investors may bid on it. If you want to buy it back, you will have to compete with them (tough). If the starting bid is too high, then nobody will bid. You can just bid 1 penny above the starting bid and get the property back. The problem is you have to pay in CASH. You also probably have to use a different person buying it back, cause otherwise the bank may cause an issue. I think this is a risky strategy.
You can postpone your sale until the short sale is either accepted or rejected, but if you do nothing there is not much you can do. Although you may have some strings to pull, now is not the time to waste.
While a Short Sale in going on, it can stop the action if your offer is around the BPO or within 60 to 82%.
If you don't have a complete Short Sale package and a Cash Offer ready to submit, then you can try a "Deed In Lieu Of Foreclosure"
You really should be talking to a Short Sale Investor, not having your realtor do it because most of the time they won't even talk to Short sale investors. They still get to sell the house when the Bank takes it from you.
That is why Class action suites are being Filed, because I submit offers and later find out the offer was not even presented.
Is your house currently for sale as a short sale? If so, your Realtor can ask your lender to postpone the sales date, especially if you have an offer on the house. If you are not in the process of doing a loan modification or a short sale, you don't really have options at this point.
Once it goes back to the bank on the sales date (most likely...unless it's postponed), your property will be assigned to a local Realtor who will contact you and probably make you a "cash for keys" offer. This is an offer from the bank giving you money in exchange for you getting out of the house by a certain date (the bank will want you out as soon as possible so they can get it on the market). Generally, the faster you move out, the more money you can get.
Craig Lawler, REALTOR
Security Pacific Real Estate
How are you going to stay ? You would be required to move ONCE foreclosure hits your credit scores it will tank scores you MAY HAVE TO PAY double triple security deposits rent a location including 1st months rent.
SOME bank offer owner lease back HOWEVER you are at risk
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
There are a couple of possibilites but HIGHLY UNLIKELY!!! I don't anyone yet that was able to stay in their home so prepare yourself. I would hope that you could possibly look at this as a new start and begin packing for the move. I know so many people that fought to the bitter end and after they moved they were so relieved... even happy to have a new beginning. I wish you the best and try to make the best out of a bad situation. Good Luck!!!
HomeSmart Real Estate
I am sorry. If you want to talk to someone, call me anytime 562-433-3777 my name is Sindy. I understand that you do not want to move.
If your home does not sell at auction it will go back to your bank, either way someone will own your home and it will not be you.
If you do not move out on your own, the person who owns your home after the 8th will either place a notice on your door or knock on your door. They will ask you when you are moving. If they do not talk to you or make arrangements with you, they will file an "unlawful detainer" action against you. They will sue you for possession of your home.
It will take a month for the court date and the judgement to get the sherrif out to physically evict you.
You may be able to make financial arrangements with them. Tell them you need money to move, whoever own's the home may help you out.
You are not the only one going through this. Anyway, when you rent someone else fixes stuff when it breaks...
Are you working on any sort of a loan modification with the bank? If the home sells at auction, you'll be competing with a lot of hard core investors with cash in their pockets...this option does not work well for people who are not familiar with the bidding process. If you want to stay, you need to contact your bank and see what your options are. If you are working with a Realtor, maybe they can do this for you. Please don't waste additional money in retaining a loan modification expert as they don't really do anything more then you can do on your own. I've been providing free loan mofification assistance for over 3 years now, so will be happy to answer any questions you have. Good luck. I know it's a tough time.