Posted on: 21st Jan, 2008 10:10 am
Hello, I am in the Long Beach, CA area and I have been working with a real estate agent since July '07 to negotiate a short sale deal with Wilshire Credit. Which is what Wilshire suggested I do when it became clear that I was not going to be able to continue making mortgage payments. We found several buyers and submitted 4 offers to Wilshire. They sent me a letter stating that they would review the paperwork and send a written notice of their decision within 60 days. That was on December 17th, less than 30 days later on January 16th, Wilshire foreclosed on the property. Is this legal? They asked for short sale offers and agreed to go that route and then foreclosed on the house anyway. Do I have any recourse? From what I understand it is better to have a short sale on your credit that foreclosure.
Hi chefebo,
Welcome to the forum.
You have rightly understood that short sale has less effect on your credit than foreclosure. You have said your lender has agreed for short sale then why did they foreclose all of a sudden? Have you asked them the reason behind it? Was it judicial foreclosure or non judicial foreclosure?
Thanks,
Larry
Welcome to the forum.
You have rightly understood that short sale has less effect on your credit than foreclosure. You have said your lender has agreed for short sale then why did they foreclose all of a sudden? Have you asked them the reason behind it? Was it judicial foreclosure or non judicial foreclosure?
Thanks,
Larry
It is legal for them to foreclose on the property while awaiting on the short sale. If it was just filed then you have some time. I would talk with a manager in the short sale department to get them going on the approval a little faster.
Did the lender already sell the property or just issue the foreclosure?
Also to answer the question, the lender does not have to accept any short sale offers. They have the right to pursue whatever means are the most beneficial to them. If that is foreclosure they can due so. I have seen lenders turn down full price offers if they think that they can do better with a foreclosure. Often it doesn't make any sense.
Also to answer the question, the lender does not have to accept any short sale offers. They have the right to pursue whatever means are the most beneficial to them. If that is foreclosure they can due so. I have seen lenders turn down full price offers if they think that they can do better with a foreclosure. Often it doesn't make any sense.
