what happens to my offer when a short sale property goes to foreclosure? Does the bank still honor it?

Asked by Pam, Miami, FL Tue May 4, 2010

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Alma Kee, Agent, Tampa, FL
Wed May 5, 2010
Pam,

Is the seller refusing to sign a Promissory Note? From what I've seen, some lenders who have PMI protection will allow a property to foreclose unless the Seller(s) signs an agreement to repay part of the loss on the sale.

Ask your Realtor to clarify what is going on and why your offer was rejected.

Hope this help.

Good luck,
Alma

PS the previous answers are correct, if the house forecloses then it may be a long time before it comes back on the market and you will compete with other buyers and may sell for higher than you are willing to offer.
0 votes
Nereida Figu…, Agent, Miami, FL
Tue May 4, 2010
Pam, you have a choice to closed as soon as possible before foreclosure date or make a follow up until property come in foreclosure listing. If you need my services, just call me please.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Tue May 4, 2010
No, they do not honor it. You do not have a contract with the bank. You made an offer to the current owner. The bank is not party to that offer.
0 votes
Pam, Home Buyer, Miami, FL
Tue May 4, 2010
It is not in foreclosure yet. they are having problems with the Mortage insurance and they want to pull out my offer so the house goes to foreclosure
0 votes
Joseph Domino, Agent, Scottsdale, AZ
Tue May 4, 2010
Probably not. If the bank cannot come to an agreement with the Seller the bank will try to sell the property at the foreclosure auction to the highest bidder.

No bidders? The bank will assume control of the property. They will select one of their preferred Real Estate agents to prepare to put property back on the market. Depending on the circumstances this could take 3, 6, 10 weeks (who knows?. Probably not the same agent that had the listing previously and not the same asset manager either.

Your current offer with go straight into the cylindrical file.
0 votes
James Gordon…, Agent, Hamilton, OH
Tue May 4, 2010
Pam you kind of received your answer on your offer if the investor decided to let the property forclose. In my experience the servicing bank will not proceed with negotiating the short sale after the deed has been recorded as the seller that listed the property no longer has ownership rights. It will vary so just wait and the property may come on the market at a different price that what it was priced at when you made your offer.
Web Reference:  http://www.Find1Home.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more