Karen, Home Seller in Pahrump, NV

Why is my home being foreclosed on when the house next door continues on with a short sale?

Asked by Karen, Pahrump, NV Wed Oct 12, 2011

We put the house up for short sale in June. Every month since we have gotten foreclosure notices-even the month we received an offer (buyer has since pulled his offer). The house next door went up for short sale a couple weeks after ours. How are they picking and choosing who sits on a short sale and who they foreclose on? Trying to save what little credit we have by a shot sale. Our auction date this month is the 21st. Thanks for any info. Karen

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inna ivchenko, Agent, Calabasas, CA
Sat Sep 15, 2012
Karen, so what happened after you posted this question?
Was you able to finish your short sale?
Nobody can make you any warranties while signing a listing for a short sale. Sometimes, even the best of the best are not able to stop a foreclosure..
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Mark Fleysher, Agent, Las Vegas, NV
Fri Oct 14, 2011
Check your agent's attempted and successful short sales numbers. Today, go with an agent who specializes in short sales, as they know all the ins and outs, including how to postpone sale dates.

Agents below are right, Real Estate today is the new Wild Wild West.

Mark Fleysher

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Annette Law…, Agent, Palm Harbor, FL
Thu Oct 13, 2011
Jim's response, "You can't rationalize with irrational people" is right on.

Short sales are the 'Wild, Wild, West of Real estate. There exists an illusion of rules, but the reality is "Anything goes and anything can happen."

When a short sale closes it is a real miracle!

Congrats to all of you extremely hard working professionals who have guided your buyers and sellers to a successful outcome in this most unpleasant of transactions.
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Guy Ghanem, , Las Vegas, NV
Wed Oct 12, 2011

I understand you listed the home in June, but more importantly, when was the last mtg payment made? Once a "notice of default" has been recorded at the recorders office, Nevada law provides a 3 month waiting period. It is important to note, that more often than not, this process gets delayed and takes longer than 3 months.

Here's how that breaks down: Day 1-35 is called the "reinstatement period" You can pay up, stop the foreclosure and the lender must continue with the terms of the loan if the status has been brought to current.

Day 36 thru the end of the 3rd month is called the "redemption period" At this point the only way to keep the home is to pay off the loan in full including fees and penalties.

The final 21 days known as the "publication period" This is where the "notice of trustee sale" becomes public. About 10 days prior to the end of the 3rd month, publicly advertising the foreclosure sale date starts to take place until the set sale date arrives, which is the step of the process that you are currently in.

A couple of things that you should know:

First, you CAN postpone this date. Typically this has a very high success rate if you already have an offer in place. An offer that has backed out does not count. Have you received another offer? If you do have another offer, call the bank immediately and inform them. If they are being uncooperative, you can also call the trustee requesting the sale. Their info will be on the certified letter that was sent to you initially or the notice that was taped to your door, or by going on the CCNV website and looking up your property records.

Second, this is also another scenario that has been occurring as well. The property will go to trustee sale, nobody will buy it, the property will go back to the bank, and the bank will REJECT it. If that happens, you will still be able to remain in the home and try to get it sold before they start the process all over again. Why would the bank reject the property? One reason why, is they may not want the loss on their books for that quarter.

In conclusion, why is your house up for trustee sale and the neighbor isn't? The answers are in a form of questions...How long have you been delinquent vs. your neighbor? Does your neighbor have a current offer on their home? Is the bank stalling the foreclosure to keep it off their books for now? Did the neighbor initially try for a HAMP and then enrolled in HAFA? As Dori said, "It's case by case." Every situation is different.

Best of luck.
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Kelly Kline, Agent, Big Pine Key, FL
Wed Oct 12, 2011
The option for a bank to foreclose on a loan is completely up to the individual lender. some banks foreclose faster than others. I am guessing that your neighbors house is with a different bank? Probably so, but I would recommend contacting your lender immediately and your real estate agent and ask them to contact your bank as well. And, as always, I recommend to seek legal advice from a real estate attorney and they can tell you whch options you have.

Good luck!

"Keys Kelly"
Kelly Kline, REALTOR®
Coldwell Banker Schmitt RE Co.
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Jim Paulson, Agent, Boise, ID
Wed Oct 12, 2011
Great question!

Every lender and every case is different. The answer should be "what is in the best interest of their stockholder's" for the publicly traded banks, however they are not consistent in their actions which continuously makes everyone ask "WHY"?

My only conclusion I can offer is that you can't rationalize with irrational people, but call your lender today and try to work something out. It sounds like it is probably too late if your less than two weeks away. They have already done their research and determined it is better on your case to foreclose and move forward with reselling it.

Best of luck moving forward!
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Angela Ather…, Agent, Las Vegas, NV
Wed Oct 12, 2011
Karen, the neighbor may be in a government short sale program that keeps there from being a sale date, they may not even be delinquent on their loan. Many short sales dont require delinquencies or can do a short sale only being 31 days past due...... Dori is right everyone has different situations, different type of loans each unique to borrower and the property. Many times the sale can be postponed although theres no guarantee. If you were in HAFA for instance, you should be taken off foreclosure date for at least 120 days (should automatically be post posted)..... How long has it been ?? time lines are important to know in this situtaion.....
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Dori Z, Agent, Issaquah, WA
Wed Oct 12, 2011
Hi Karen,
Have you approached your bank about if you qualify as a candidate for a short sale? Your neighbor's situation may in factbe very different than your own, and of course their loan may be well be held by another institution. These cases are really considered on a case by case basis- there are many factors which can impact if you are a candidate for short sale or not.

It is really critical that you contact a local legal expert who can help correctly guide you as to what your options are at this challenging juncture. It can make a big difference in knowi ghow to navigate a confusing and ever changing process. I would strongly recommend that you speak specifically a local real estate attorney who is extremely familiar with and actively works with short sale and distressed property situations. If you need to get a name and do not have one (a local established Realtor should have names to recommend), it is SO important you understad legally- and practically- how this process goes, and the pros and cons of each option are, specifically for your situation.

(I live in another state than you and obviously, real estate related laws are different state to state.)

Let me know if I can further assist!
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