our short sale (in progress) WAS to go to auction in June... (foreclosure, agent)

[twowolves]

We are in the waiting period of a short sale we put an (seller accepted)offer on and are the sole contract for this home at this time. BPO was done last week so now we are waiting for an answer.

My husband googled the address of said home (prior to our bid laSt week) and found that it was set to go to auction on June 7. We alerted our realtor and she then found out that yes it was true.

She then found out that the listing agent 'talked' the lender into letting him try to short it, and so the house never went to auction.

What does this scenario say/look like to you? Why would the listing agent do this? (so that the homeowners would avoid f/c on their credit?) And does this give us a glimpse into the thinking of Chase now okaying the short sale for the homeowners? (since apparently they ok'd taking it off the auction block per LA's request to 'short' it....)

If they turn down our offer, our contract is done. Then, will they likely foreclose on the homeowners?

For a home to go to auction, do the current owners need to be pretty far behind on pmts?

[Broker Dave]

Is this the 1st, 2nd (or more) date that foreclose was set to happen?

If it's the first date and the offer is close to market value with few stipulations they should work with you to the end.

But if it's a low offer....

[twowolves]

Originally Posted by Broker Dave

Is this the 1st, 2nd (or more) date that foreclose was set to happen?

If it's the first date and the offer is close to market value with few stipulations they should work with you to the end.

But if it's a low offer....

As far as I know, it was the 1st date to go to auction[?]

BPO was done, we won't know what it revealed.
In the s/d house is in, there are 15 homes listed w/a wide range of prices/sf.
From over $100/sf down to under $60/sf.
Out of those 15 homes, only 2 others are pending.
Our offer was ~$61/sf, with minimal stips, we did not even ask for any $ toward closing. Our financing is VERY solid with us to put 55% down. (45% loan)

So, for a home to be set for auction, does that usually mean that they h/o's have not been paying for AWHILE?

[rjrcm]

Originally Posted by twowolves

...So, for a home to be set for auction, does that usually mean that they h/o's have not been paying for AWHILE?

It depends on the state and their foreclosure rules. It also depends on the bank and how much time they give the owner to make up payments before sending a notice of sale. In our state, once the owner has been given notice, the auction date can't be any sooner than 90 days out from the notice date. It's also fairly common to get the date postponed if the bank is reviewing a short sale contract. I have seen situations where the date has been postponed multiple times.