Short Sales While in Foreclosure

[SeeSac]

You may be correct if the sheriff is conducting an open auction. In that case, the lender will have no reason to preclude a winning bid from a third party. If it is a blind auction, the lender will submit a bid that is consistent with the balance of the defaulted debt, purchase the home and proceed with marketing the REO.

Perhaps you should go look up what a 'blind' foreclosure auction is. Thank you.

[irish_links]

A blind auction is another term for sealed bid auction. Every state and most counties in each state have their own unique rules for conducting sheriff sales and property auctions. Some are likely to employ sealed bids.

As for lender bids, in the past it was almost universally true that a lender would submit a full-priced bid for the reasons I stated. Perhaps that is less likely these days in so much as lenders will do almost anything to avoid adding to their REO portfolios. Pardon me.

What's your problem?

[SeeSac]

What's your problem?

The fact that foreclosure auctions are PUBLIC auctions, not sealed bid auctions. A blind foreclosure auction is not a sealed bid auction, it is one where the bidders are not afforded an opportunity to inspect the property.

[hsmomx3]

Just got home from work so I am trying to get caught up with all of your posts and I thank you for all of them!

My parents do not want to bid, they want to buy it beforehand.

ON a sidenote, I thought people would be coming to take pictures of the inside of the home but nobody has been here.

This house needs a lot of work (painting, carpeting and some minor plumbing work) not to mention there are now termite lines forming on the foundation outside around the house. I know, just what we need.

[hsmomx3]

Actually, Chase screwed it up so bad that it was not until August they turned the mortgage over to some company I have never heard of, IBM Lender Services, and it was not until November when we got a notice of foreclosure stating the house would be auctioned in February.

To be honest, still have not made arrangements to move into an apartment close to the kids school as I found out, I might lose my job again.

[hennie pennie]

>>>> "Actually, Chase screwed it up so bad that it was not until August they turned the mortgage over to some company I have never heard of, IBM Lender Services, and it was not until November when we got a notice of foreclosure stating the house would be auctioned in February. To be honest, still have not made arrangements to move into an apartment close to the kids school as I found out, I might lose my job again." <<<<

OMG, I hope you stay employed. I'd contact Legal Aid and see if you can have some experts go over those papers -- that seems a VERY short time for a foreclosure to go into effect.

[hsmomx3]

Sorry, I should have stated the dates...Chase messed it up from April 2009 to September 2010 and we were making limited payments as requested.

Then they turned it over to this other company who put it in foreclosure but they said they are willing to work with us on a modification.

I wonder if they allow the foreclosure auction to go as planned even while you are attempting to do a modification. Something they never really said.

[hennie pennie]

*ping*

>>>> "Actually, Chase screwed it up so bad that it was not until August they turned the mortgage over to some company I have never heard of, IBM Lender Services, and it was not until November when we got a notice of foreclosure stating the house would be auctioned in February.

To be honest, still have not made arrangements to move into an apartment close to the kids school as I found out, I might lose my job again." <<<<<

[SaintDismas]

I am a real estate professional and I have handled short sales successfully. In regards to knowing or finding a reputable agent my best advice would be to interview a lot of agents, not to go with the first one who gives you a good presentation. I would want to know the extent of their experience, and any other question that is on your mind, ask it of every agent that you interview. Sad to say, without a direct recommendation from someone you know that has personally dealt with such an “expert” with success, it’s hard to determine who is an honest broker who is truly looking out for your best interest and will walk away from your situation if it would be no better than sign exposure for him or her.

Personal referrals are the best way to go in my opinion, aside from that, interview agents and ask them 500 questions and use your own best judgement and common sense. If they present to you something that sounds wacky or illegal, be careful, it might be or it may just be shady. Any agent that tries to get your redemptions rights signed over to them w/o compensation is the first example of that I would avoid at all costs. Once you sign over your redemptions rights, you have lost control of the situation without leverage to save your credit or anything else. Hope this helps

[SaintDismas]

hsmomx3,

You’ve got to do something, NOW. Lot’s of advice here, but the bottom line is you just don’t have time to think about it. Please call an agent or a lawyer TODAY. Again, I really suggest you call Fred and Kevin at http://shortsalepowerhour.com/

They are devoted Christians (in AZ!!!)who will not deceive you or lead you down the primrose path. If they can’t help you they will tell you that.

[CodeToad]

Until your house has been auctioned by the county trustee, if your State does it that way, the house is yours. You can pay the mortgage and keep it up to the point it has been auctioned.

[The Iceman Cometh]

I got out of real estate when the banks, specifically the loss mitigation departments, became downright awful to work with. They didn’t care, didn’t want to work with sellers, and often were illogical (wanting values higher than appraisals, etc).