So I had trouble with my other login. I spoke with my agent today who was successful in contacting the listing agent. Apparently the owner of the home (who's in redemption until 11/8/09) has a 1st and 2nd mortgage on the home. They are both with WaMu. The 2nd mortgage has approval on the offer written. Apparently the person handling the 1st mortgage is dragging their feet a bit, but the LA is confident that it'll get approved because both mortgages will be going off of the same information.

Being a first time home buyer, this news sounded great. But I don't really like counting my chickens...

Justin,
You need to be asking the agents involved with this transaction as they are the only ones who know all the details of the offer and status of the home you made the offer on. Every bank has their own way of doing things. If I have learned nothing else, I have learned there is no pat rules regarding the handling of short sales. Don't be afraid to call your loan officer or agent and ask questions.

Good Luck
Sharon Koch
Century 21 Brighton Towne Co

Justin,

It is possible to experience a successful short sale after the Sheriff's sale, and you must be CLOSED by the end of the period. The redemption period exisits in Michigan for exactly this reason ... to allow the seller to either purchase or sell the property.

Keep us posted ... November 8th will be here in no time.

Hi Justin, if the house you are interested in via short sale is in redemption I wouldn't think a short sale would be an option. In my experience I have not had banks accept short sales after the sheriffs sale which is when redemption period begins. In Michigan owners of homes with over 2.99 acres are allowed 12 months to redeem their property after sheriffs sale BUT the bank typically requires all this owed plus fees and penalties. The opportunity for short sale is typically prior to sherriffs sale. It sounds like you need clarification as to what point in the foreclosure process this house is actually in.

Hello Justin,

In Michigan the seller has 6 months (12 if the property is over 2.5 acres) after the sheriff sale to "redem" the property. If no sale has been completed within that 6 month window then the property automatically reverts to the bank.

You do need the bank approval and your loan approval to close prior to the 8th or the property will become the Bank's asset and the seller will have no longer be involved. In very rare cases, the bank will extend redemption but that is not a usual option.

Not sure what status this house is actually in, short sale or foreclosure. A short sale is actually a pre-foreclosure and the seller is trying to avoid a foreclosure. If the bank has accepted a short sale offer, then they are probably not going forward with a foreclosure.