Short sale turning into foreclosure?

Asked by Jackie, Kasson, MN Wed Nov 4, 2009

I put an offer on a short sale 4 months ago and have not gotten a response from the bank (countrywide.) I just found out that the property will be going into foreclosure. What exactly is the buying process when the home you have an offer in on goes into foreclosure?

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Lenny Frolov’s answer
Lenny Frolov, Agent, Brooklyn Park, MN
Wed Nov 4, 2009
Benito is correct, if the property is just getting to the sheriffs sale the process should not change much and you could still get your offer accepted. If the property is nearing the end of redemption then you will have to wait for the bank to list the property for sale (which can take anywhere from a few weeks to a year plus) to make a new offer.
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CCC, Home Owner, San Diego, CA
Wed Nov 4, 2009
Hi, do you mean Sheriff Sale Foreclosure or the end of redemtion period?

In Minnesota, owner occupied properties have a right of a 6 month redemtion period, which menas that the property still belongs to the owners.

If your offer was submmited before Sheriff Sale, listing agent should request to postpone the sheriff sale and wait until Short Sale approval is done.

Countrywide is a very slow Short Sale servicer.

If your offer was under redemtion period and nothing is approved by the end of the redemtion, then you are correct, property will go to foreclosure. Once it is a Bank Owned property / foreclosure, you re start the process all over. Sometimes, the listing agent could try to talk to REO management and let them know that there is a willin buyer but it is not very possible it will work.

Also, your financing, if any, could have issues if the property has been winterized.
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