Client was completing Short Sale. Had buyer, had extended to close on Sep 30. Suddenly on Friday she received a notice Lender stating it had been sold

Asked by martha bailey, germantown, TN Mon Sep 23, 2013

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Suzanne MacD…, Agent, Succasunna, NJ
Tue Sep 24, 2013
Banks typically follow two paths at the same time, one leads to foreclosure and one leads to the short sale. It looks like the foreclosure path came to an end first. Are you using an attorney for the closing? There may be a redemption period during which you could complete the short sale or some other legal remedy. I would highly recommend talking to an attorney familiar with the foreclosure laws in Tennessee.
1 vote
Suzanne nailed it. I would add, did she have an executed and legally binding extension from the lender to give her until the 30th?
Flag Tue Sep 24, 2013
thinz, Agent, Allenhurst, NJ
Thu May 7, 2015
Problem with this question is - does the seller mean the house was sold in a foreclosure sale or that thee loan was sold off to a new lender/investor so the original lender could clear the bad debt?
Many homeowners get this confused!
Tom Hinz
0 votes
, ,
Tue Sep 24, 2013
I have a Bank of America right now on the same situaiton. Short Sale was approved for both 1st & 2nd in early August. In late August, BOA notified the Lisitng Agent the 2nd was being transferred on August 31st. The Listing Agent is now working on getting a new approval for the 2nd.

You also can see if the new mortgage company will honor the exisitng Short Sale approval letter. It is worth asking.
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