Property Listed for Sale Is Scheduled to be Auctioned?

Question

So I have been following listings for a specific area I would like to purchase in and I've come across an interesting situation.

Here are the facts and my corresponding thoughts:

1. Property listed online (Trulia, Zillow, etc..) and is well below market value and appears to be depressed. ~ I'm thinking this is a shortsale

2. Got my RE agent involved so I can find out more information. Turns out the property is "UC awaiting short sale approval"

3. I look at the county's foreclosure listing and i see the property is set to be auctioned off next week. The website also shows that it has been adjourned throughout the majority of 2018.

I guess my overall question here is why would the property be listed at auction if it is under contract? Are the recent adjournments a product of the short sale approval process? Just looking to shed some light on this specific situation and maybe the short-sale/auction process; why or if short sales can get pushed back to the auction.

Christopher Phillips · Answer

@Michael Georgiadis

This is rather common.

The contract is just the offer to the bank. The bank still has to approve the shortsale. If they don't feel like the offers are of any substantial merit, they can still let it go to auction.

Some of this depends on which state you're in and if it is a trust or a mortgage. A trust can quickly auction off a property depending on state rules. A mortgage has to go through judiciary procedures.

Property Listed for Sale Is Scheduled to be Auctioned?

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