Mortage CO selling note that is in foreclosure, now what?

Have a situation. Original lender (homecomings) is selling a mortage of a friends on July 1st to Aurora. House is listed on MLS. Someone ready to put an offer in. Do they need to wait till July 1st and put it in with Aurora?

Also he was wondering if Aurora will have to start the entire foreclosure process over which would give me 6-10 months more time to get things in order. It takes 3 months before a bank can even file for foreclosure so does Aurora have to go that path or can Homecomings still continue with the foreclosure. They never set an actually date for sale, but a pending date if filed was for mid Aug they were told.

Who is Aurora? If the house is listed then the owner still has the right to sell the home. Depending on the buyers offer price and how behind the seller is on their payments will determine if they need to have the lender approve the sale. Sounds like the home has not yet hit the Courthouse steps for sale. Need more info to help you out. Sheila

If the foreclosure has been started by Homecomings it is likely that Aurora will continue the existing proceeding unless state law disallows it.

House is up for short sale. Bal owed is 545K and the area took a hard hit and now listed for 375K. And scary thing is last May when the refi was do, it was appraised at 640K so market is dropping here alot still.
Spoke to Aurora today. They told me it takes 7-10day to hit there system once bought and that if an offer is put in beforJuly 1st goto Homecomings but if Homecomings can not get it closed before July 1st we need to start over. So might as well wait on all offers it seems.
One person mentioned since Florida is a ligation state you can take Aurora to court and challenge the ownership and a judge may make the new bank start all over with the process from day one. This will give owner more time.,possibly about 8 months.
Any thoughts?

I have had this happen twice now. Both times I had to start from square one with the new lender. Fortunately the new ones were smaller lenders and worked quickly.

I am not sure about being able to bring the case to court but it makes sense. …especially if you explain that the homeowner is just as close to foreclosure yet, the process of helping them out of the situation just started over and you may not have enough time. I can’t imagine a judge refusing it with the current state of the market. At least in my area, the courts are doing everything they can to help the homeowners.

I am currently working on a SS with the same senario. The original bank sold the loan while it was in pre-foreclosure state with our SS package in their possesion. They sold the loan and the new lender started the process over. Our SS package is with them and have been for the past 8 mths. We just got an approval, and will be closing on July 15th. In all this transaction took approx. 12 mths to close.