Is short sale possible once foreclosure is served

Still would like to find out yet tonight. The notice he got was to vacate the property, so is that when it is too late.
Sandi

Sandi usually the owner can work out something right up untill they start the auction on the property. I have seen people come right in with a check and stop the auction,it may have been for the full amount though I'm not sure.

Thanks, that helps, maybe now the guy will take some advice from me.
He thinks he can buy another year of time. But he never listens to what I suggest. Now he is scared.
And asking now for my help.
He rents it out and lives in the camper and uses the money to live on, and never puts it on any payments.
I will call him tomorrow, not going to deal with him tonight.
I even offerred to speak with his lender with him, and see what he actually needs to clear this. But he gives me the run around on that too. He hasn't paid taxes for about two years, and no payments for over a year. And it is a nice house! He wouldn't even do a lease option when I suggested it.
So will call him when I have time.
Thanks again and have a great Easter.
Sandi

he is not really interested in keeping the property to me Sandi if he did not make any house or tax payments for so long then when it comes time to lose his property he does not want to lose it. something is not right here some where and then he did not want to listen to you the first time when you had asked. Every one has their own situations and problems but not making any attempt to make the house payments or taxes something is not right.

shawn

I agree with you. And he said he doesn't care to save it, just wants his money out of it. That is why I told him before, I can't help if he doesn't work with me.
I still didn't call him back, because I am tired of trying with him.
However, I will speak with him, but maybe he needs to find an agent, which he doesn't want because he has to pay them.
So hard to feel sorry for someone like that.
I will not do anything more for him other than some advice. Because he has no desire to do what he should do. If he has no conscious about not paying things, why would I think he would be honest with me.
Thanks for your post.
Sandi

some ppl just won't listen or take action.

the foreclosure can be stopped by making up back pymnts and reinstating the loan if possible

the biggest problems is they wait too long to act

This guy fell behind, he did have health issues and is in his 60's. And not sure if it was right when he rented out the house to not pay anything, because it was already going into foreclosure. But what bothered me is that every time he calls me, I tell him to find out exactly what they need to bring it current and I get the run around from him.
I told him, get in writing, what does he need. He says he already knows, but won't do anything I suggest.
Was he right in not doing any payments, hoping he'd sell it for full price.
I know people who made payments and those were just lost anyways at the end.
But I believe he could have done more, and just confronted them, but he says that wouldn't make a difference.
I am sure he will call again today, so will have to know what to say to him.
Thanks for the post.
Sandi

I may be wrong, But it sounds like he HAS 2 Problems now. I don't know about Tax Sales there but it sounds like the Lender will lose the Forclosure to the Tax Unit on o Tax Auction. I don't know but you might be able to look into that. I too agree this Issue sounds very strange.

Bruce........

I do remember him saying he was behind now, 2years on taxes. And I know he has a second mortgage on it.
First mortgage he owes about $60k the second one around $7k and about $3k in taxes. And he had it FSBO for $118. Then he came down to $109K so he can buy the camper he lives in. The assessment is about $108k.
But he just seems panicky all the time and you can't make him do a short sale. Says he doesn't care about his credit, just needs money to live on.
So I try to avoid him when I can.
But he will keep calling till I talk with him.
And maybe I will check into a tax lien, that does throw out the second mortgage if I remember right. But would have to study up on this again.
I suggested doing a lease option and asked him about trying that, and again, had reasons not to. So will have to call him and hopefully he will take care of this himself.
Thanks for the post.
Sandi

Hello Sandi,

The reason he is difficult to work with is this is hard on his pride. Some people have a lot baggage they have to work through first. I get this all the time. I recommend just following up with him and saying you'll be happy to look into a short sale with him. You'll have to explain that he will not get any of his money out of the deal. The $ is gone due to lack of payments, etc. There will be no profit.

If he isn't happy with that politely say, "I'm happy to help you further, when you are ready. You have my information when your circumstances change" You were nice and willing to help, but honestly, he has to process that he's losing the property and all the $$$ in it. Unless he can cure everything himself and that sounds doubtful. He is going to have to process and come to that realization himself.

Be there to help, but don't lose sleep over someone that won't help themselves or allow you to help them. There are tons of deals out there.

~Andrea

I don't know what state you live in, but I will tell you how it works in CA. It is basically the same for every state, however, the differences lie in timelines and who is responsible for selling the property.

In CA a homeowner receives a notice of default (other states it could be lis penden). Once the NOD is filed the homeowner has 90 days to cure his loan. If that doesn't happen then the bank will file a notice of trustee sale. Once the NOS is filed then the homeowner has 21 days to cure the loan. If it is not cured in the last 21 days, the house goes to auction. Depending on market conditions and how much money is at loss, the bank will either set the receive price at a ridiculous amount high or low amount. If a person meets the reserve they win the auction, if not the bank takes the house back.

Here is my question:

1. You said the guy told you the bank wants him out in August. Does that mean that the house already went through the foreclosure sale process or he just recieved the filing notice (NOD or Lis Penden)? If the bank already went through the auction process the guy is out of luck. However, if the notice was filed, absolutely you can call the bank and work out a short sale.

Hope this helps.

KimmyJ

It hasn't gone to any auction, or been listed with any agents. And he has gone to court, and the judge gave him 90 days to sell it himself. That was in February.
I asked him if he wants to save it, he said no because he loves living in the camper, and then he can travel.
But he suggests doing things that aren't right, and said he will milk it for all he can. And now is scared because they said to get out by August.
I have explained the short sale, and he wants the money.
He works part time, and could have kept up on payments, but says he intends to stay till they kick him out. His camper is next to the house.

I am in Wisconsin, and I even tried to talk this guy into letting a realtor I know try to sell it. He said no, because he is not paying anyone money to sell his home.
And I offerred to talk to his lender with him, and that was another no.
I think he needs to see an atty which he won't pay either.
He probably thinks I can come in and bail him out of this, but he won't listen.
And can a short sale be done with tax and a second mortgage still due?
Thanks for your advice and help. I know this is annoying to keep discussing this with him, but it is helping me to learn some things that may come up in other deals.
Sandi

he is strategic defaulter and you don't won't to get caught up in it.

As far as some of his comments. He doesn't have to pay anything in a short sale because the lender pays the agent. He should be able to walk away free and clear. Why did he stop paying his mortgage in the first place?