Can Owner Do Short Sale Of Home Even After Foreclosure With Redemption Period Notice?
February 26th, 2010 - ByPosted in Stopping Foreclsoure
A friend of mine stopped paying for their home that is upside down. Now it’s in foreclosure and they received notice of auction date. Do they still have a chance to negotiate with the bank to sell property on short sale? Please advise.
4 Responses to “Can Owner Do Short Sale Of Home Even After Foreclosure With Redemption Period Notice?”
February 26th, 2010 at 7:23 pm
Not really. The sale would have to close before the auction date, and even if the buyer has cash there isn’t going to be enough time.
Your friend did not just hear about this, at least 4 months have passed.
February 26th, 2010 at 10:15 pm
It might be worth a try. Some banks require that you go into default in order to approve the short sale. If they do approve it, they might make your friend put money into escrow to cover what they’re out from filing the foreclosure. But, if they’re already gone to the point where you have a foreclosure auction date, they’ll probably just let the foreclosure go through. They’re already assuming that they have to go that route.
February 26th, 2010 at 10:57 pm
No – once bank has initiated “foreclosure” time for short sale or other remedy is over. Short sale has financial ramifications also – Tax money must be returned. Your friend should go ahead and file BK ASAP, if not – bank can come back in future and sue for balance of loan.
February 26th, 2010 at 11:27 pm
Sure they can work on a short sale. They can negotiate with the lender even after the sale if nobody bid on the property but it’s wiser not to wait till the last moment.
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