If it does not sell at the auction it will become an REO (real estate owned). At which time the bank will want to list the property on the market and try to sell it. Prior to it becoming an REO it is considered a foreclosure property. Many people use REO and foreclosure as one in the same when discussing real estate but there is a lit bit of a difference as to where the property is in the foreclosure process.
I see below you stated you attorney advised against you doing a short sale? Just curious as to why?
Many times you can get cash for key and they will give you money for your moving expenses. You can also get them to give you a written release for the deficiency. Both of these are very common if you are living in the property as your primary residence.
Your attorney may know something about your scenario that I don't and maybe that is why he/she is advising as he/she is. However, you may want to get a second opinion on the legal advise he/she is giving you.
If you do decide to do a short sale I would be more than happy to assist you with the entire process. A short sale can be completed at NO COST to the seller. We have professional negotiators that can negotiate on your behalf and all of the commissions and fees get paid for by your lender. I would be leery of any company that charges you or your buyer a fee for these negotiations. We understand you are in a hardship and we want to help.
Licensed Real Estate Broker NV, MA, and RI... more