Closing on property being foreclosed. - Posted by Barbara_NY
Posted by Barbara_NY on December 08, 2000 at 07:49:07:
I’ve been involved in quite a few situations during the last year where I’ve attempted to negotiate a short sale with a lender in the later stages of foreclosure. The owners really want to get out and the property is worth less than the amount owed. I am aware that the lender’s best interest at this stage is to buy back the property at the auction to either establish a deficiency or to insure they get the amount guaranteed by PMI, HUD, etc. Also, please note that in these instances when the short sale isn’t going over well, I’ve suggested assuming the mortgage, buying the lender’s position, and other creative possibilities. The end result is some form of no. However, I’d like to know if anyone has successfully…
… closed on the property anytime short of the auction subject to the first.
For example: Let’s say the lender is owed $150,000, the home is worth $110,000 and you closed for $110,000 - $125,000. At the closing a check is cut to the lender for the full amount of the purchase price. The check is sent to the lender. What has been your experience as to what happens next…?
- Do they cash it and accelerate the remaining balance?
- Do they cash it and allow the balance to be paid at the previous owner’s monthly payment rate?
- Do they send it back?
- If they don’t accept and continue the foreclosure sale,
a. is your sale voided?
b. if the sale isn’t void, and other than the mtg. not being satisfied, any other title issues to overcome?
Please let me know what your experience has been, and thanks.