Home Buying in Bullard>Question Details

The Belo's, Home Buyer in Bullard, Fresno, CA

Can it legally go to foreclosure?

Asked by The Belo's, Bullard, Fresno, CA Thu Jun 17, 2010

We have an offer on the table for a short sale, the seller has accepted it, and we have been waiting for their lenders approval and I just noticed today, on your web site, that it is now listed as a foreclosure. We have been in contract with the seller since April 22, trying to take advantage of the CA tax credits, and were trying to close by the 30th of this month. If we are in contract and the seller has already accepted our offer can the home legally go into foreclosure for $54,000 dollars more than the original list asking price (which we offered full asking price). Also where does this put us as buyers and what are our rights in this deal?

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Nathan’s answer
Yes, the homes can be foreclosed on by the bank.

This just happened to me at the beginning of August by Wells Fargo Bank. I had two offers on the table that were both short sale properties here in Fresno. The sellers' accepted my offers, but Wells Fargo decided to foreclose on the properties. My offers sat with the bank for over 3 months and Wells Fargo never once responded to either one in that time frame.

In both cases Wells Fargo dumped the properties at the court house steps for nearly 20% less than my offers when the opening bid was listed. My offers were right in line with today's market values.

Short sales are definitely not short. This real estate market is in trouble when it comes to short sale transactions going forward, when you see how bad the overall process is from the banks who hold these mortgages.
0 votes Thank Flag Link Wed Aug 18, 2010
My first question to this is where is your Real Estate Agent during all of this? He or She should be able to verify on Tax records the answer to your question. On a Short Sale the lender or if more than one must accept the conditions of the sale for it to move forward.
0 votes Thank Flag Link Fri Jun 25, 2010
On a good note, congress passed an extension to the tax credit giving you three more months to get your deal closed!
0 votes Thank Flag Link Thu Jun 17, 2010
For any legal advice, do contact an attorney who specializes in real estate, as he/she is your best source of advice; in the meantime, do discuss your concerns with agent, he/she can answer your question based on your specific situation.
0 votes Thank Flag Link Thu Jun 17, 2010
It might be a good idea to have your Realtor verify that the home is really listed as an REO. Many times homes get listed on Trulia from information it receives from RealtyTrac. It's a little tricky because many times the homes aren't actually for sale they have just been given a Notice of Default. The amount listed as the for sale price can be pretty confusing too, it usually has something to do with the balance of the loan when it went into default.
0 votes Thank Flag Link Thu Jun 17, 2010
I'm afraid the bank's rights supercede yours. Having an offer on a short sale does not guarantee lender acceptance. Banks are very overwhelmed, and if it doesn't get assigned to a negotiator in time, and the loss mitigation department didn't stall the short sale, its possible for the property to be foreclosed on.

I have access to foreclosure information in California, so if you'd like me to verify the status, don't hesitate to contact me.

Heather Peck, SFR
Sellstate NRES
0 votes Thank Flag Link Thu Jun 17, 2010
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