How upfront would you expect agent to be about sellers circumstances...

[Brandon Hoffman]

It can go into foreclosure w/o being a short sale don't forget. The only criteria for being a short sale is the home is being sold for less than the mortgage. Don't make assumptions about what the seller owes. I've seen homes go into foreclosure that the seller could have easily sold and walked away with money.

[middle-aged mom]

Is it possible the listing agent does not know?

There remains no shortage of agents who do not do their own homework and take everything at face value.

[Austin-Willy]

I agree with Palm and Brandon. A potential foreclosure does not necessarily make the transaction a short sale. Nor does beginning the foreclosure process necessarily make foreclosure a foregone conclusion. It's always possible that the homeowner has other avenues to avoid foreclosure in the event that a traditional sale does not occur.

[chet everett]

Originally Posted by Austin-Willy

I agree with Palm and Brandon. A potential foreclosure does not necessarily make the transaction a short sale. Nor does beginning the foreclosure process necessarily make foreclosure a foregone conclusion. It's always possible that the homeowner has other avenues to avoid foreclosure in the event that a traditional sale does not occur.

I can understand maybe some goofball doing a "cut off my nose to spite my face" kind of thing IF they appeared to have a bit of twisted sense of "well the deadbeats are getting help, so I will tempt fate", but once the notices go out in the newspapers and on the official government sites ...

Just to make sure I was not nuts I actually went out to the Clerk of Court and Recorder of Deeds offices. The lender definitely put everything in motion to get this property auctioned.

Talked to the staff at both offices -- they said only a tiny fraction of borrowers bother to get the court records updated with a release if they do get the loan reinstated, which also seems wacky to me.

I mean once this data is OUT on the official sites it seems like a giant banner advertising "lowball offers are gonna come rolling in"...

I understand that there are those who would get behind and then caught-up (maybe they sold another property or liquidated some other assets, but the way the markets are that could not have been the preferred path either) and there are no NEW liens so then have not used to the property to secure other subordinate financing.

Makes me a little crazy!

[Austin-Willy]

Originally Posted by chet everett

I can understand maybe some goofball doing a "cut off my nose to spite my face" kind of thing IF they appeared to have a bit of twisted sense of "well the deadbeats are getting help, so I will tempt fate", but once the notices go out in the newspapers and on the official government sites ...

Just to make sure I was not nuts I actually went out to the Clerk of Court and Recorder of Deeds offices. The lender definitely put everything in motion to get this property auctioned.

Talked to the staff at both offices -- they said only a tiny fraction of borrowers bother to get the court records updated with a release if they do get the loan reinstated, which also seems wacky to me.

I mean once this data is OUT on the official sites it seems like a giant banner advertising "lowball offers are gonna come rolling in"...

I understand that there are those who would get behind and then caught-up (maybe they sold another property or liquidated some other assets, but the way the markets are that could not have been the preferred path either) and there are no NEW liens so then have not used to the property to secure other subordinate financing.

Makes me a little crazy!

I personally have been less than a week away from conducting foreclosure sales on two occassions - with multiple borrowers scheduled to get foreclosed on each occassion - only to have the lender cancel all the sales when something was worked out with all the borrowers. Don't have any data on what percent of postings follow this path, but it's far from unheard of.

[Captain Bill]

[quote=chet everett;8324206]Right. This is not a marketing thing, nor is it a mistake. From what I can tell the seller DEFINITELY did get behind to the point where the lender did send out notices through the required governmental units...

quote]

They can be behind on their payments so that the lender is sending a NOTS, and still not be in a short sale situation. Meaning that they have sufficient equity to cover the selling expenses.