SHORT SALE (sale date April 30th) (foreclosure, agent, mortgage, mortgage)

[elaf4056]

Hello,


I have been in contract on a short sale since December and finally the bank has approved the sales price, but will have an official written bank approval hopefully by this week since its still being reviewed by the "mortgage insurance". So knowing the fact that there's a sale date scheduled (April 30th) do you think we have a high chance of getting an extension or requesting a motion to cancel the sale date?

- fyi previous owner had 3 extensions granted
-bank will not cancel sale date

[Modification Specialist]

Originally Posted by elaf4056

Hello, I have been in contract on a short sale since December and finally the bank has approved the sales price, but will have an official written bank approval hopefully by this week since its still being reviewed by the "mortgage insurance". So knowing the fact that there's a sale date scheduled (April 30th) do you think we have a high chance of getting an extension or requesting a motion to cancel the sale date?

- fyi previous owner had 3 extensions granted
-bank will not cancel sale date

My experience a sale date can be postponed by the home owner filing bankruptcy. I serous doubt they are going to do that. Though a chapter 13 BK has less of a credit impact as a foreclosure does (7years vs 10 years).

Are you hearing the sale date from the lender, or has there been a notification from the courts or banks attorney?

If it is from the bank seen many times banks scheduled an end date on their records that everyone is working towards as a deadline. They will most likely reschedule the date. However if it's Well Fargo, three times is their limit - it will not be rescheduled.

This is just my observation. The end of the month April 30th, seems a little odd. Towards the end of the month have seen Banks focusing efforts to close new loans. In many states sale dates are scheduled for the first to second week of the month. You should check with the local court house to see if it as been scheduled. If it is on the court docket, your are running out of time.

..

[bentlebee]

Usually they will not move forward with the foreclosure if they have accepted the offer in writing. That will save the bank from being responsible for maintenance, etc. but keep in mind if anything happens and the buyer is not moving forward by the banks due dates the deal is off.

[Lacerta]

A bankruptcy typically does postpone the sale date, but also can wreak havoc on the short sale process. We had one that went on for 2 years because the seller filed bankruptcy, and then still was never able to close in the end. When they filed bankruptcy, it basically started the entire process over from scratch, because it gets assigned to a completely different department at the bank. So I wouldn't recommend that as a viable option.

Also, my experience is NOT that having a short sale in process means that they will typically postpone the sale. Again, 2 different departments, who don't necessarily talk (unless the loan is with a small local bank). We've had one that had an approved short sale, moving to closing, within days of closing, go to sale and the sale department refused to postpone. We've had MANY times that we've called to ask for a postponement and found that that department had no idea a short sale was in process.

I wouldn't expect the bank to cancel the sale date. A cancellation means they have to start the whole process over, serving notice and waiting the 120 days, and everything. An postponement, maybe, but not a cancellation.

Basically, as the buyer, you have no control on this. The listing agent can request a postponement from the sale department, due to the pending short sale. The bank may or may not agree. Usually, they do, but not always, especially if there have already been multiple postponements.

[elaf4056]

-The defendant has filed bankruptcy which was discharged about a year ago
-Plaintiff (countrywide) refused to cancel the sale date, so as of now the plaintiff went to court to a file motion to cancel sale by providing documents of the sale and corresponding emails from the bank.