Foreclosure + Short Sale, Opportunity or Risk?

Question

I have a property under contract, that my GF and I are planning to house hack then rent out entirely after a year or 2. While under contract, the property appeared on a foreclosure site I follow. The date of the foreclosure is prior to my contracted purchase date. My thought is, wouldn't the bank be incentivized to sell at my rate, as opposed foreclose on it?

Does this provide an opportunity for me to further negotiate, if the bank re-opens negotiations? Or does it present risk, that if appraisal comes in higher, the bank can ask for more, as well as take additional offers.

My understanding is, they can accept my offer, or if the appraisal comes in higher than my offer, re-open negotiations.

Trying to understand if I have leverage here. It appears to me I do, but I am brand new to this so I am unsure. Any thoughts are helpful. Thanks!

Minna Reid · Answer

OK well they will probably move that foreclosure sale date to try to do a short sale, which I hope you know will take several months. the property will likely be valued at market value, and there will not be too much deviation from that number.

Nicholas L. · Answer

Assume nothing here.

Travis Kumar · Answer

Okay thanks!

Travis Kumar · Answer

The property is scheduled for a foreclosure 3 days prior to my contract date. I assume that once the foreclosure department and short sale department connect, they will opt to go forward with the sale.

My contract is with the seller, but once we found out it was short sale, I believe there is a short sale negotiator working with the seller's agent.

Minna Reid · Answer

The property is scheduled for a foreclosure sale prior to your close date, is that correct? Or it was foreclosed prior to your contract date?

Who is your contract with?

Nicholas L. · Answer

@Travis Kumar

seems like something you need to talk to your agent/ attorney / title company about