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House scheduled to foreclose in less than 3 weeks, too late for short sale?

We had a contract on a house that appraised $40k less than agreed price, Sellers could not come down that far in price, we didn't want to go up, so we terminated the contract.  Less than one week later, I'm looking through our local paper and there is the house we tried to buy, scheduled for foreclosure Dec 4!  Our agent contacted theirs, now we are under contract as a short sale.  Their lender is Wells Fargo.  The Sellers did not have their property listed as a short sale, they were not pre-approved for one with WF, nor to my knowledge have they started the process for a short sale.  We just went under contract on Nov 13, all documents will be submitted within 72 hours to WF through Seller's agent's attorneys.  My question is - are we too close to scheduled foreclosure auction to stop it with the short sale?  Or can the short sale delay the foreclosure?  Thanks!
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November 15 2012 - US
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Why not wait and buy it via a foreclosure? 
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November 16 2012
If the bank has a legitimate offer, they can be persuaded to delay the foreclosure process.

Plus (depending on the state) there could be a redemption period which allows the owner to continue with a short sale even after a sheriffs sale. In Minnesota the homeowner has six months to redeem or sell the property after sheriffs sale. The law varies from state to state.
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November 15 2012
As per FNMA and FMAC servicer guidelines...if the trustee sale is scheduled within 60 days of receiving a request to short sale to avoid foreclosure...they don't have to honor your request to sell for less than owed...your designated short sale specialist will have to be very aggressive to help you avoid foreclosure...

It is always best to reach out for help earlier than later
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November 15 2012
Every lender is different when is comes to short sales that are scheduled for foreclosure.  Ask the company that is handling the short sale to communicate all of the details to the negotiator at WF and see if they can get WF to ask for a postponement.  If that does not work, have the seller appear in court with the contract and ask the judge to postpone the sale to give you enough time to get the short sale  approved and closed.  It is a long shot but it is worth the effort.  If that does not work, have your Realtor keep an eye on the property after the foreclosure is completed.  It make take a few months for WF to put the property back on the market, but once they do, you could make an offer.
Best Wishes, Sharon
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November 15 2012
This will depend heavily on the investor. You have enough time to possibly get away with it but I would not hold my breath for a positive answer.
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November 15 2012
I closed a short sale (it took 3 months from start to finish) that had a Trustee sale date 1 week from when I took the listing...so if nobody drops the ball, you might have a shot.  Depending on the servicer/investor they may grant the file a few extensions, or they might not.  I hope for the former :)

Best wishes from So-Cal and good luck
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November 15 2012
It's never too late to request a short sale!
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November 15 2012
 
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