prospective purchase of short sale is going to foreclosure

Oakland, CA · Member since 2017 · 8 posts · 2 votes

just heard from my agent today that after three weeks of waiting back from the originating lender. My purchase of a short sale is being foreclosed upon. The lender verbally agreed upon the amount that I purchased at. Once we began on the process we had to wait for the final approval before escrow started. For three weeks they were unable to get in touch with the lender. The lender just notified us today of them moving towards foreclosure. I'm assuming since nothing was written down that both me and the seller have no recourse to get this deal back on track. besides trying to get more money for the house. what are other motivation for them to move towards foreclosure? Is there any way of dealing with the lender to try and save the deal? Thanks ahead of time.

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Brett Goldsmith
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
9y
Who is the servicer? When is the sale date? Are you saying this was submitted to the investor and the investor denied the short sale? Without a valid approval there is likely no recourse whatsoever.
Servicers foreclosure to mitigate losses. Due to their or investor guidelines they are making a decision to foreclose and recoup funds now than to continue to spend money in hopes of recouping funds later.
Without being involved it's tough to know if there is any way to get the sale date postponed. Not sure if seller has or is willing to consult with a bankruptcy attorney.
Best of luck,
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
9y
Steven R. They may have also run a title search and found additional liens/ judgements on the property that preclude them from a short sale as they would get wiped out in foreclosure
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Steven R.
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Oakland, CA · Member since 2017 · 8 posts · 2 votes
9y
The Lender that originated the loan is foreclosing. The sale date was unclear. I'm getting some of this information third party from my agent. The lender was set to go into foreclosure mid August anyway if there was no buyer. I came in before the foreclosure proceedings began. I believe the seller is looking into bankruptcy, would a bankruptcy help to prevent the foreclosure proceedings? I called the lender today to get a more clear picture with no response.
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