(1) Your loan is not yet approved and will not be able to fund BEFORE the trustee sale,
(2) The bank IS NOT willing to extend the sale date,
(3) The property will go into foreclosure because of your inability to close before the trustee sale,
(4) The seller has an all cash offer that CAN close on time â€¦
(1) You are technically out of contract,
(2) The seller can go with the backup offer,
(3) The seller will be able to avoid foreclosure.
I know this is very frustrating, but you also have to consider the other side. If their only hope of closing the short sale is to go with a cash offer, then, if I was in their shoes, Iâ€™d be looking at the same option. From a listing agent perspective, weâ€™ve had several short sales foreclosed on because we had loan issues at the very last minute, the bank was unwilling to extend any longer and we DID NOT have a backup offer to go to. If weâ€™d had a cash offer waiting in the wings, weâ€™d have been able to stave off the foreclosure in all cases. No one wins when a home is foreclosed on â€“ if the bank is unwilling to extend even five more days, then, in reality, the cash offer seems to be only way to keep from being foreclosed on.
It doesnâ€™t seem fair, but unfortunately, banks are in control and can do whatever they want to do. Itâ€™s one of the sad facts of the current marketplace.