We are under contract to buy a short sale home, closing is in 3 weeks, the agent now tells us the bank is doing a forclosure sale. What can we do?

Asked by Billandlisa, 48044 Wed Sep 1, 2010

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Jeff Launiere…, , Tampa, FL
Wed Sep 1, 2010
Make sure the listing agent has talked to all the necessary people. Many lenders have one department that does the loss mitigation for short sales and another for the foreclosure. Often these two departments do not communicate. Likely the listing agent needs to contact the department that is proceeding with the foreclosure and discuss the accepted contract with them. Usually, they will delay the foreclosure if that is done. Occassionaly, they will not.

Jeff Launiere, CDPE
Keller Williams Tampa Properties
1 vote
Alma Kee, Agent, Tampa, FL
Wed Sep 1, 2010
Also what has worked for me is I'll send a fax to the attorney that is shown on the Lis Pendens and include the HUD-1 Settlement statement that shows the net amount.

Ask your Realtor to get a copy of the HUD-1 and ask her if she'll fax a note to the attorney that filed the Lis Pendens for the investor that actually owns the mortgage.

Lastly if you did NOT receive a written copy of an approval letter from the lender, ask for a copy. You absolutely can't even think you will ever close without having the approval letter in hand. You normally have to close within 45 days after the approval letter is written. If there is no approval letter, then the price may be too low. Was an appraisal or BPO already done?
0 votes
Alma Kee, Agent, Tampa, FL
Wed Sep 1, 2010
Hi Bill and Lisa,

Is the auction date already set or is it just a preliminary notice, a Lis Pendens?

What's the address? I'll see if I can look it up for you.

All the best,
0 votes
Wed Sep 1, 2010
Unfortunately, that's what happens with short sales. I've had that happen on numerous occasions and that's a risk buyers take. If you're paying cash you can attend the foreclosure auction and bid on this property. Otherwise, your agent can try calling the corporate and escalating the short sale to postpone the sale.

Elena Ollick
Amerivest Realty
Faith Home Loans
skype: napleshomes
0 votes
Marta Mohan, Agent, Sugarland, TX
Wed Sep 1, 2010
Your Realtor has probably called and tried everything he/she could by now. It has happened to me previously. Mine worked out to our benefit. My buyer ended up paying less for the house once it foreclosed. I am surprised however that they would foreclose with an accepted contract. In my case we were just negotiating.
0 votes
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