What options do I have when under contract on short sale that is now gone to foreclosure.?

Asked by Gloria Martin-plummer, Waldorf, MD Wed Feb 20, 2013

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Akil Walker’s answer
Akil Walker, Agent, Upper Marlboro, MD
Wed Feb 20, 2013
Hi Gloria,

I am assuming you working with an agent, I would ask them to do some investigation on the status of the particular property.

And If you are not working with an agent feel free to call me so I can find you a property and make this does not happen again.
1 vote
Alqamar Malik, Agent, Largo, MD
Thu Mar 21, 2013
Good question Gloria! I have seen some instances where the buyer retrieved the property at the bank auction period. However this route is time consuming and there's no guarantees that you'll be the winning bidder. I'm sure this dilemma is a bit frustrating for you :-(. I wish you all the best.

Alqamar Malik
Keller Williams Preferred Properties
Bowie, MD
Web Reference:  http://www.Alqamarmalik.com
0 votes
The Roskelly…, Agent, Gambrills, MD
Thu Feb 21, 2013
Hi Gloria,

Unfortunately if the property has gone to foreclosure it could be months or even more than a year before the property is processed and offered for sale. Depending on the type of loan it may be offered through a broker in the MLS or the lender may first attempt to sell it at the county courthouse steps auction. So disappointing but my best advice is to pursue another home.
0 votes
Geoffrey Gra…, Agent, Los Angeles, CA
Wed Feb 20, 2013
Really you have minimal options. The bank did not act in a timely manner processing the Short Sale to circumvent the Foreclosure. To minimize the heart ache and Headache have your agent submit a Release to get your Earnest money deposit back. Home inspection and Appraisal money cannot be recouped. Find another home and if possible stay away from Short Sales and Foreclosures
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Bethany Drew, Agent, Berlin, MD
Wed Feb 20, 2013
Are you are sure the foreclosure date has past and the sale is ratified? In our experience, we have had banks stop the foreclosure sale the day of the sale! If you are aware who the bank is, you could ask them if they know who will be managing the property when it moves into REO status. In many cases the bank handling the short sale transaction will stay the same however sometimes they will choose an asset management company who will be handling the sale. Lastly, I would suggest to your agent to email the agents in your area that usually list REO properties and ask them if the property you are interested in is in their pipeline of properties coming?
Good Luck!
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Ron Thomas, Agent, Fresno, CA
Wed Feb 20, 2013
If you truly had a CONTRACT; which I don't believe you did, you should see an Attorney.
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Don DeHanas, Agent, Waldorf, MD
Wed Feb 20, 2013
Hi Gloria,

I am sorry to say that the short sale bank holds all of the cards in these transactions. In many cases the foreclosure process does not stop, even in the midst of a short sale transaction. Short sales can be attractive because of the price point, however, this is one of the risks in pursuing a short sale. You may wish to seek legal advice from a real estate attorney. I would be happy to recommend several if you choose to go that route. In the meantime, I would strongly urge you to contact your Realtor, and begin looking at other homes for sale. The inventory is low, and many homes are not staying on the market long. If you see something you like, do not let it pass you by. Best of luck!
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Catherine Pu…, , Silver Spring, MD
Wed Feb 20, 2013
I would believe that the contract is null and void and that if the foreclosure has gone already through your only option would be to put in an offer with the investor now holding the asset....which could be a lengthy process because this person or entity is not always clearly documented during the early stages following a foreclosure....so, tracking the actual holder of the note down could prove difficult ad time consuming.

Keep in mind that having the "home occupant's" signature on a contract is not the same as having bank approval in addition to "home ocupant/seller" approval. Many people mistake short sale sign off by the home owner who took the loan off as ratified contract when, in fact, it is not ratified until the bank asset manager also applies their signature of approval.

I hope this makes sense.

Feel free to call me on my cell phone if you have any questions or need a better explanation. I will be happy to speak with you.

If you have not already been approved by a lender, I would be happy to run numbers for you to let you know how much you can qualify for.

Feel free to call, write or text if you have any questions!

The first step in the home buying process is to get pre-approved for your mortgage. You can start this by going to my online link. Click here and enter your information so I can run numbers for you: https://6760686183.secure-loancenter.com/WebApp/Start.aspx?&… .
After you hit SUBMIT, I will be able to access your information through our secure website and will run figures for you right away.

This does not obligate you to use Fairway Independent Mortgage Corporation, although we do appreciate the opportunity to work with you.

I am looking forward to working with you and helping you get the keys to your new home!


Catherine Purcell
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
Cell 202 573-6035

Over 25 years of Real Estate and Mortgage experience
focused on educating my clients so you can make an informed decision that best suits your needs!

MLO# 194172 FIMC NMLS# 2289
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