If the sellers are willing this might be an option for you but they will probably need an attorney to draft the legal filing and even then it is not a guarantee that they will be able to get their motion granted. Another option for you might be to get a hard money loan for 3 months and go bid on the thing yourself at the foreclosure sale. Neither of these are great options and neither guarantee you the home but it gives you some ways to pursue the property. If you need help with the hard money loan piece or bidding at the trustee sale you might contact Aaron Lebovic, I imagine he will come up if you google him but if not contact Jerry Spaeth at First Integrity Title Agency and he should be able to help you find Aaron. Last but not least an easier option is to simply wait for it to make its way through the foreclosure process and try to buy it as an REO from the bank. Hope some of this helps.
Best of Luck out there!
Carole & Greg Higgins
Contrary to the Bank of America apologists here on Trulia, this is often the case with them in particular and other notorious banks. Let us know what bank it is. What you have is a contract with the seller and a pre-approval with your lender. Sadly, this is not 'your' house. Not yet and possibly not ever. The bank has every right to cancel the sale to you and send it to foreclosure sale at any point in this process. Again, sadly I have seen them do it with no explanation whatsoever. If the listing agent has access and communication with the bank you may get an answer. Often these banks do what I call 'going into the witness protection program' by disappearing and not answering any emails or phone calls for days and even weeks at a time.
Short sales are a not easy and not for the faint of heart. Also not meant to put your whole heart into it due to all of the potential problems that can occur. A lot will depend on what the BPO comes in at. Sometimes higher than the perfect home next door. I wish you the best and wish I had better news for you. I have seen them send homes into foreclosure after all negotiations are done and have given 'verbal approval'. I have also seen them postpone the sale for a week at a time until the closing is done. There is not a consistent 'normal' way things are done with short sales. And there is really nothing legally you can do to force the bank to sell this home to you at any price. You should know more this coming week. All the best and best of success on your purchase.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Lien holders will never consider a short sale contract if the offer has not been executed by both the buyer and the seller. The seller has ultimate control in whether to accept an offer, just like in a regular sale. I'm not a lawyer, but as a licensed Colorado broker I am required to know this.
In a foreclosure situation, it is truly the seller who is suffering. A buyer can simply go buy another house, but the seller is LOSING THEIR HOME. I wish those in my industry would learn about foreclosure defense and help their clients save their homes rather than pushing short sales as a cure-all. Helping a client save their home does not pay us brokers anything, as a short sale does, but I can tell you it's the right thing to do, and it earns tons of referrals. There are cases where a short sale is the better alternative to helping the client keep their home, but it takes an experienced and caring broker who is not just looking out for their own commission check to know the difference. I have been doing short sales in Colorado since 2004 and I am now to the point that I refer my clients to a foreclosure defense lawyer and/or a loan modification lawyer to explore those options BEFORE I even attempt a short sale. We sell the American Dream, which has become a nightmare for so many people. It's time to fix our laws and keep people in their homes whenever possible.
It is up to the owner of the property to take legal action to challenge the foreclosure, if the owner believes they have been harmed by the bank's actions. Here in Colorado, challenging foreclosure is very difficult under current state law. Representative Beth McCann will be introducing legislation soon to improve the current foreclosure law. I encourage everyone to write their state representatives and demand they pass this legislation. Rep. McCann introduced similar legislation last year, but the banking industry quickly defeated it at the State House. It needs all the support it can get if we are to stem the tide of foreclosures in Colorado and put our state economy back together in a lasting and meaningful way.
You can't really sue anyone...and what would be the point? Do you really want the property so badly that you'd hire an attorney and try and force the seller to sell? Even when you've likely signed a Short Sale Addendum that clearly states you need bank approval?? It's a shame when things don't work out the way people want it to, and they look for ways to "take legal action" to get what they want. Just doesn't make much sense to me, and probably not worth the time, money and hassle.
Talk to your REALTOR and have him/her contact the bank's negotiator or asset manager to see if the sale date can get pushed out.
I am sorry to hear this; that sounds like an extremely frustrating situation. I like to say short sales are somewhat like roller coaster rides; sometimes when the ride is over, you look back and realize it wasn't a fun ride...other times, it ends in with you feeling like it wasn't so bad and you'd ride again. If you think short sales are fun, then there is probably something wrong with you. :-).
A bank considering a short sale simply makes a business decision based on several factors. Such as, will they make more money, or rather, lose less money, if they make a claim on the mortgage insurance policy and foreclose on the house. Or, will they lose less by short selling the house. This is a rather simplistic explanation and there's more to it, but the point is, how do they lose the least. It may be that they have figuered it will cost less in this case to foreclose on the house.
In Colorado, Since the short sale lender isn't a party to the buy/sell contract, they are not bound in any way to the terms the buyer and seller have agreed to. If they approve of the deal the buyer and seller have made, the deal moves forward, if they don't approve of that deal, they have the option to proceed with foreclosure, or take some other option.
You have a couple of alternatives from my perspective; you could bid on the house at the foreclosure sale if you have the cash, or if the house doesn't sell to an investor at the auction, the bank will put it back on the market under their control and you can have another shot at it then. By far, most properties at auction go back to the lender and get relisted with a Realtor later.
Try to ascertain why they have chosen to proceed with foreclosure. When they say there was an "error", it could be any number of reasons, but could also be as simple as they are missing some paperwork that they must have in order to postpone the foreclosure sale.
I wish you luck and hopefully you'll let us know what happened; you can never stop learning in this business, that's for sure!
Now for my disclaimer...ah hem, THIS IS NOT LEGAL ADVICE AND YOU MAY NOT RELY ON THESE STATEMENTS FOR YOUR PARTICULAR SITUATION. I don't know all the details of your specific siuation so I am speaking generally. Consult your legal counsel for specific legal advice. ...Oh yea; always remember, free advice is worth what you paid for it.
Also, the fact that the auction date is set for 1/23/2013 really doesn't mean much with short sales-it happens quite often. Generally, the bank must make an offer by Wed, if they don't the sale is continued for a week at a time until either the bank pushes the sale date out or actually makes an offer.
Also, the sale can be pulled up to 9:59am on the sale date. So, I would advise you to talk to your agent, and let them know of your concerns.
Keller Williams Denver Central
1777 S Harrison St #1100
Denver, CO 80210