I am currently renting month-to-month on a home that I have made an accepted offer on pending short sale. It still may foreclose. Now what?

Asked by Meagermom, Stone Mountain, GA Sat Oct 8, 2011

The owner has a primary, and a recourse loan, both through Chase. I've read nothing but horror stories about Chase, and it's possible they will reject the short sale and foreclose. Do I have to move out of the house before I can then bid on the foreclosure? How much notice should I expect to have to move out? Or, do I have to move out at all if I'm trying to buy this house, (whether short sale or foreclosure)?

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Phyllis FOX, Agent, Atlanta, GA
Sun Oct 9, 2011
Hello Meagermon

You are protected under the tenant foreclosure act but , you need to be in contact with the bank and/or the attorney. Showing that you are on a month-to-month lease ,your payment record and your willingness to purchase may stop the foreclosurer. In some cases the bank will give you a lease and may work with you on the purchase .
I have several cases where the tenant was able to get a new lease and help with purchasing. I would be happy to assist you in obtaining further info . HAVE A GREAT DAY!!!
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Sharon Smoot, Agent, Snellville, GA
Sat Oct 8, 2011
Hi Meagermom,

If the house is scheduled for foreclosure, you should find out when the foreclosure sale is and you are free to place a bid. However, you must be able to pay the purchase price almost immediately. There is little time for you to go through the underwriting process required when obtaining a mortgage loan.

If the home is foreclosed on, there is legislation known as the Protecting Tenants at Foreclosure Act of 2009, which will protect your rights to live in the property until your lease expires. If you are on a month to month, you are allowed to remain in the home for 90 days from the date of the foreclosure sale. So, you may have an opportunity to purchase the property from the new owner, which in most foreclosure cases is the bank, during this protected period.
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Wanda Britton, Agent, Morrow, GA
Sat Oct 8, 2011
Hello the first question is;, how long ago was the offer submitted, and has the property received a for sale date already?. If the property forecloses you will be forced to move out by the new owner which would probably be the bank. You would then have to submit an offer to the new owner and hope to be the highest bidder, and even then you wouldn't be allowed to move in until closing. This whole Foreclosure process could take anywhere from 60 days to up to a year depending on title issues etc. Depending on ypour answer to my first question I Would probably be prepared to keep my options open if I were you. If you would like I could send you some similar properties to look at just in case you're force to go else where. Please give me a call or e-mail if you need to.
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K. Bernard S…, Agent, Atlanta, GA
Sat Oct 8, 2011
My knee jerk answer is to come up with Plan B and Plan C. Plan B- contact an attorney to negotiate extending rental period upon foreclosure. B
ased on month to month lease you may get 30 days before you have to move Plan C - be ready to move on short notice. Being proactive is the key to getting what you want out of this situation. I hope it all works out for you.

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