Is it too late with Trustee Notice?

Hi BPs. Please help. I have a friend who just receive the trustee notice that his home is going to be auction 6-25. He did not paid mortgage for more than 6 months and during this time he trusted 1 of those loan mod company to help him negotiate with his lender. He just found out that they were scammer and did not do anything on his paperwork for him after he receive the trustee notice posted on his garage.

What can I do now to help him out???? Is it too late to ask lender for shortsale option? Don't we need to have the home listed 3 months in order for shortsale to even be consider? Please help. He do not want to have foreclose. Again the sale date is 6-25.......

Also, if a shortale can be work out, is there anyone in WA STATE that are experience willing to work with me on this deal? Thanks for any help you can provide!

Edited: 06/26/2010 at 12:22PM

Don Konipol

Note Investor · Tempe, Arizona

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Apr 06 '10, 07:08 AM

If your friend has no money to work with, he has no reason to stop the forclosure. If he has some money to pay some payments, he can propose this to the lender. A court order staying the foreclsoure will of course stop foreclosure. A temporary restraining order issued by the court will stop (pospone) foreclsoure sale. A bankruptcy filing will result in an automatic stay stopping (delaying) the sale.

Edited: 06/26/2010 at 12:22PM

Tyler H

Real Estate Investor

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Apr 06 '10, 07:19 AM

Don,

What is "a court order staying the foreclosure" mean??? My friend has some money...but ofcourse not all the payment amount he is behind. All he wants now is to be able to do a shortsale because he has someone at his church who might be interest in buying. But since it is not listed on the MLS, can he submit a shortsale to the lender??? And if he does submit this potential buyer, will this postpone the shortsale???

Edited: 06/26/2010 at 12:22PM

Don Konipol

Note Investor · Tempe, Arizona

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Apr 06 '10, 04:29 PM

Anything can be negotiated, or you can try to negotiate anything. Whether or not the lender will accept partial payments and a plan to pay on a regular basis can only be found out by offering this to the lender, preferably in writing.
Any court with jurisdiction can order the foreclosure stayed (stopped). This is done in one of 2 ways. Either the appropriate court is petitioned and agrees to issue a temporary restraining order, in which the lender is restrained from conducting the foreclosure sale until a full hearing can be arranged in front of the court. Or the filing of a bankruptcy by someone or an entity with an equity interest in the property will result in an automatic stay of the foreclosure. Each of these is of course a temporary measure with further court action neccessary.

Edited: 06/26/2010 at 12:22PM

Tyler H

Real Estate Investor

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Apr 06 '10, 10:49 PM

Thanks Don for your reply.

My main question is this: does anyone has success with BofA (Countrywide originally) to accept a shortsale at this stage (auction date scheduled for June 25) if this property has never listed on the MLS? If so, what is the 1st step I have to do?

Edited: 06/26/2010 at 12:23PM