If a Lender agrees to a short sale while a property is in foreclosure, they will usually forestall a sheriff sale. However, the fact that the property is scheduled for sheriff sale already, may be the reason that the Lender may forego a short sale.
All too often, folks in foreclosure have “used up” Lenders patience by saying that they will do this or that… and not follow through. When it comes to who is credible at this stage, even though not all Lenders are, a far greater percentage of debtors are not.
This does have an impact on whether a Lender will postpone a scheduled sheriff sale. Of course this varies greatly from Lender to Lender, as well as what LTV is present on the specific loan.
Hi, i just got a call from a women who says they are going to foreclosure in 1 1/2 weeks. I think the high end numbers are freaking me out a little( high end in my area) she said the house is appraised at $290,000 and her monthly payments are about $2500 a month. VERY VERY nice house for my area. $50,000 behind in payments,but she was going to find out how much was left on the loan cause she did not know. If i go to short sale, the problem is comming up with the money or someone to buy it in 1 1/2 weeks. (if am wrong please correct me) And i do not have the $50,000 nor can i come up with it. Any suggestions what to do with this? will the bank stop the foreclosure process and if they will for how long. thanks
You don’t tell us enough to help you out. Where in Ohio are you located. In Hamilton county they will delay the Sheriff’s sale if you can gain the assistance of the lender. Please post more details like where the property is located (County) and we may be able to help you. JT-IN is very versed in these matters in Ohio.
Get the information you need like an authorization for release of information from the homeowner, a purchase contract for the amount you want to pay for the property, and a hardship letter from the homeowner explaining why they can’t make the mortgage payments and why they will not be able to make the payments. Call the loss mitigation department of the lender and tell them you are faxing over the authorization for release of information. Ask if they will entertain a short sale, some lenders will not entertain a short sale but will sell the mortgage for a discount if you have the cash. If you can get a decent discount on the note you may be able to find an investor to bring the money to the deal.
If you can get the lender on board they can call off the FC sale while you work out the details.
I kinda know the process except i dont know how to, or if they will stop the FC process if i will do the short sale. thats the only thing that very confusing to me. thanks