Can owners do a short sale after they have moved out?

3 Replies


I found a vacant house in pre-foreclosure. The lender started the foreclosure process in December 2010. The owners moved out and the lender has secured the property and winterized it. The owners has assumed that the bank has foreclosed since it has been over a year and a half. According to the county records the bank has not foreclosed.

Can the owners still negotiate a short sale or is too late since they have informed the bank they were walking away?


We see this all the time, and the owners can certainly do a short sale, as long as the foreclosure isn't complete and they have the bank's approval. In most cases, the bank will approve, as the house is vacant and is continuing to deteriorate.

So, in short, yes they can still likely do a short sale...

Thanks. The owner just couldn't believe she was still the owner. Almost had me convinced. We will try to put the short sale together.

Thanks everyone

Guaranteed Rate
Guaranteed Rate is a top mortgage lender
Save $1,290 on your next home – no lender fee*
Get special perks like $1,290 in lender fee savings when you buy a second home with Guaranteed Rate.
Apply Now

AC make sure the bank actually didn't foreclose. In many of the counties around me the FC deed isn't recorded for MONTHS.

The quickest way to tell is ask the homeowner to call the lender and ask if they foreclosed or is she still the owner.