My townhouse mortgage is in bankruptcy. I am paying the HOA dues. All is up to date. There is a trustee auction scheduled soon. What if no one buys.?

Asked by charlie_loeven, Las Vegas, NV Thu Apr 17, 2014

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Robert Krop, Agent, Frederick, MD
Fri Aug 7, 2015
If no one buys, it will go to foreclosure auction. Make sure to hire an agent who knows short sales and who will aggressively market it.
0 votes
Robert Adams, Agent, Henderson, NV
Tue Jun 24, 2014
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.

Best Regards,
Robert Adams
Licensed Real Estate Broker NV, MA, and RI
0 votes
Dan Tabit, Agent, Issaquah, WA
Thu Apr 17, 2014
Charlie,
If you are in BK, this is a good question for your attorney who is familiar with your entire situation. If I understand however, at the auction, if no one bids on the unit, the bank takes ownership. At some later date, after you're gone they will list it for sale.
Have you considered a short sale? This could preserve some benefits for you and may allow you to forestall the foreclosure. Again, your attorney should be consulted before you make any decisions.
0 votes
Hi Dan, Thank you for the reply. We started a short sale with a local agent just before we went to the bankruptcy attorney. He advised against it. We no longer want the home so we are looking for a rental. I am retired and do not want another mortgage or HOA dues.
Flag Fri Apr 18, 2014
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