Posted on 01/11/2011 4:04:44 AM PST by hsmomx3
I recently found a full time job after almost two years of not being able to find one but our home is scheduled to be auctioned in February.
I have heard different things and am not sure what to do.
My parents, who live out of state, want to buy the house with cash, free and clear, not for them, but for me and the kids so we have a place to live.
Is this possible? I have heard realtors say it is forbidden, while others say it could be done.
I have not notified the agency who has our home loan but I am trying to work out a modification with them which leads me going around in circles as many well know. I am trying to do whatever can be done to save my house.
I have never been thru this so I would appreciate any advice you can give me.
Legally yes, but most banks never pursue.
There is nothing in my short sale purchase agreement to prevent me from renting back to the sellers.
That is specifically prohibited. People have lost their jobs by buying a foreclosure or short sale that their bank employer owns or in most cases just services.
Maybe that stuff could happen with Bob's Bank and Bait Shop; but most lenders of any size would have prohibitions in place to prevent this.
It would be a huge conflict of interest....
So who controls the auction?
Is it not the party who holds title to the property?
Read the fine print, most allow the title holder to accept or reject any auction bid at their option.
I supose you think the stinkiest part of my advice is GET A RAL ESTATE ATTORNEY TO ADVISE YOU AND PROTECT YOUR INTERESTS.
How do you know of these folks, and since so many people are facing foreclosure OR are buyers wanting to capitalize on short sale real estate, just how would one go about identifying reputable honest professionals in this precise field in one's own home state?
For instance, what kind of searches would one conduct at google.com, and how could one verify that such realtors found who specialize in distressed properties are actually competent & trustworthy?
Thanks.
It would be almost difficult top prove why the bank accepted one bid over another (wink wink)
Picture this- a bank client who is a builder or general contractor with large loans and lines of credit outstanding tells the bank he can fix up the house and resell it for $XXXXXXXX, and already has a buyer in his pocket ..... and the bank gets its money back on the old loan plus gets the new loan.
His bid is gonna carry some weight
see my post above
It’s just buseiness Sonny, it’s not personal
Minor correction. You are LISTING the house below the payoff amount. The bank will be doing the 'pricing' of the house. Your listing price has NO legal standing for the price of the house UNLESS it is high enough to pay off the balance OR the seller has agreed to make up the short. Otherwise, it is just a marketing tool used to get offers to send to the bank.
25 percent seems like a very low number.
And we have friends who wanted to look at a short sale on the market and their realtor friend told them NOT to even bother, that it would take way too long to buy any short sale in this housing market.
And that there might be five percent of residential housing investors as opposed to a mere five years ago.
How astounding!!
If you have to ask these questions, you are in no shape to give advice on foreclosure auctions.
Read the fine print, most allow the title holder to accept or reject any auction bid at their option.
What fine print? Once the property goes to auction, it is out of the hands of the bank. Besides, until the auction occurs, the title holder is the homeowner, not the bank. Are you really in Real Estate?
The bank has no control over the winning bid. It is a court ordered PUBLIC auction and the court must approve the winning bid.
*ping*
“A fellow freeper needs advice in this thread, any of you care to assist her? OR know of any freepers knowledgable about short sales following foreclosure?”
Chunga and Kartographer are very intelligent about these things and I think they will be happy to help.
I did just read about this change to the rules below.
Treasury Drops Short Sale Requirements
http://www.cnbc.com/id/40930787
BTW hsmonx3 I hope things work out for you and for all the Freeper’s who have had difficulty. Honestly it breaks my heart to hear people lump everyone into a mold calling them names bad things can happen to good people. A job loss, an illness there but for the Grace of God go I! I don’t think the Lord looks at people as dead beats he knows what is in their hearts and mind.
Silverleaf is posting above his pay grade.
Not sure what you are saying, but your info about letting someone who works for the bank purchase that banks foreclosed or short saled property is inaccurate.
It MAY happen, but those doing that will lose their jobs if they are caught doing it.
The problem in this market is that (in many areas) unless you want to buy a new house or a bank owned property, you will end up bidding on a short sale. We are 3 1/2 months into ours and it is frustrating but I think we are finally going to get the house we want at a reasonble (not basement bargain) price. Of course we had the time and we never stopped looking.
That is for HAFA qualified properties. Not for the general short sale.
I understand your response if taken in context but for clarity, the bank has every right to purchase the property at auction.
Can your parents pay the amount in arrears? Then you could sell the house to them and buy it back with a rent to own deal?
I’m sorry you’re facing this situation.
They may put up some speed bumps for the bank but they will never get the bank to ‘go away’ and let you live in the house for no payments.
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