I am trying to work with someone by doing a short sale on their property. The bank has scheduled the foreclosure sale on 9/5/06 so not much time at all. The problem is the bank said they will not postpone the sale while they are reviewing the short sale package and that process takes 30-45 days. Does the house actually sale that day and if it does, what happens to my sales contract on the house? Is this worth pursuing? There is little to no equity in the property and the bank surely wouldn’t get market value for it at auction.
An answer or help would be appreciated as soon as possible.
Hey Denise: Foreclosure sales vary from state to state. Here in Michigan, the sale takes place on the courthouse steps. The buyer has to pay all cash at the sale and the foreclosed party has 6 months redemption to get the property back. I’m not sure your specific situation, but the bank will be at the sale putting in a bid at the “owed amount”. It sounds like the timing is going to be hard for you and it sounds like the bank isn’t very flexible. Typical short sales with flexible (and smart) lenders can be wrapped up as fast as 10-14 days assuming you have financing in place.