Posted on: 27th May, 2009 02:27 pm
Can my lender forclose on me while they are also working with me on a short sale? Long story short, I was transfered across the country in 2006. We put the house up for sale, but had no offer. We kept it afloat (from 300 miles away) for the next 3 years but simply ran out of money and stopped making payments in January.
At that point, my lender agreed to a short sale. Since then, my real estate agent has been working closely with my them, holding open houses, faxing documents, and most recently submitting several offers on the property.
Meanwhile the "debt collection" side of my mortgage company doesn't seem to know about any of this. No matter how many times I tell them we are in the middle of a short sale, or how many times I give them names of people I'm working with in their SAME COMPANY, they don't want to hear it. My question is this: Is is possible that the same lender working with me on a short sale could also forclose on the property before the short sale is finalized?
At that point, my lender agreed to a short sale. Since then, my real estate agent has been working closely with my them, holding open houses, faxing documents, and most recently submitting several offers on the property.
Meanwhile the "debt collection" side of my mortgage company doesn't seem to know about any of this. No matter how many times I tell them we are in the middle of a short sale, or how many times I give them names of people I'm working with in their SAME COMPANY, they don't want to hear it. My question is this: Is is possible that the same lender working with me on a short sale could also forclose on the property before the short sale is finalized?
If the payments are not being made on the property, they have the right to foreclose. The short sale department will typically give you a timeframe in which they want to be paid. The lender should not auction the property until after that date. I hope this helps...