Less Than 2 Weeks Til Foreclosure!!!

Hi All:

I have 2 clients that are going to foreclose on their homes by September 8th deadline. They’re both listing with a realtor but running out of time fast. I’m suppose to meet with them today. According to what they say the payoff is, they don’t have much equity. However, according to my research, the equity is there unless they’ve refinanced.

Do I get them to sign a form enabling me to contact the lender to get the needed information? How should I continue this deal???


Show up prepared with all your documents. I usually have 4 documents:

  1. Disclosure - this is just for me. It tells the home-owner that I am not a lawyer, I am not a realtor, that I am in this as a for-profit venture, I am taking over their payments and am not recommending they stop paying their mortgage, utilities, etc., etc., etc… This document is not needed by the bank, it is just for my file.
  2. authorization to release information
  3. purchase contract
  4. List of documents the bank will need. Signatures not needed on this document. This is just to be up-front with them so they don’t freak out if/when you start asking for pay stubs, bank statements, taxes, etc. This also gets them started with a hardship letter. Finally, this gives them a chance to offer the necessary docs right then and there.

Not enough information given to suggest how you could continue the deal. Equity or no equity, short-sales still work. Not a whole lot of time left but still possible. I have stopped the sale on deals where I got involved only 2 days before the sale date. These may (and I stress MAY) be deals where you should walk away. Since it sounds like you are relatively new, your time may be better spent on deals where the sale date isn’t so looming. Only you know the best, so…

Thanks for the info Turborocket.

The details of this possible deal are as follows:

  1. Owner paid 350k for house 5 yrs ago
  2. Refinanced and now owes 420k (excluding fees and other charges)
  3. Appraised value around 450k.
  4. 5k needed for repairs.
  5. Average home sales take 3 months in this area (PG county Maryland)
  6. House scheduled to go to auction on Sept. 8th 2006.

I am thinking that a short sale might work. But I would have to get the bank to drop the price around 390k (maybe not doable).

I have gotten the owner to sign an authorization allowing me to obtain information from the bank concerning his loan. But I have not yet got him to sign a purchase agreement because when I met with him, I wasn’t sure of my offering price (needed more info on the house).

I have never done a short sale or have I taken over payments. But I think getting the bank to short sale and having the property deeded to me will be my best option. What do you think?

Do you have a Short Sale package that you would be willing to send me? You mentioned that the bank will need a list of documents. What are they? Is that the Short Sale package?

Or would a sub2 be better in this case???


With 2 weeks away, its critical that you get all the information ASAP, because it takes for ever for banks to process the paperwork.

Its going to be hard to ask the bank to discount the property by $60000 with $35000 in equity in it. I’m sure the bank is going to send that one to the auction.

I’d say, look past this one.

Check here for more pre-foreclosures.

Thanks for the advice turborocket. I will be in touch. I believe short sales and sub2’s are the way to go with the market slowing.

By the way, is it possible to do both a short sale with a sub2? Nowadays most people are foreclosing in my area bcoz interest only loans are now coming do and interest rates are ballooning. With the amount owed it’s hard to rent and/or resell.

What is the solution for situations like this???


IMHO this is a definate short sale. I recently shorted a house that was in great condition, no repairs needed and appraised for $530k. After submitting the initial short sale package and meeting the appraisor at the house, the bank approved $394k. I wholesaled the house the same day I bought it.

I’d say go ahead and do the short and offer a lot less than 390k.

Good luck!

  • Short Sale Mike

Can I recommend staying on top of the mortgage company to keep moving…I have found that they are receiving so many short sale offers that packages will sit for a week or more without anyone even looking at them…Good luck!!

For the most a lender will only look at it if it is three -four weeks out.

Usually after that they will just close the file.

the reason ?

Well typically the lender gets *issed off because they have been trying to communicate with the debtor for months on end with no results.
Now they take it personally and say stuff them.

they shouldn’t but they do.
My coaches have a mitigator on the calls and they say that all the time, if there is one thing that rackes them off is a late attempt to stop a sale.


hi Turborocket,
Care to share how to help homeowners who are 2 days before the sale date ?
I thought short sale takes a long time to complete. What is the average time ?