Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
Many short sales will not go into foreclosure. It is my opinion that an advertised short sale is not legit unless the seller has comlied with the lender/s requirement and the lender/s have approved it.
Personally I don't believe that sellers, enabled by their agents should be permitted to advertise as a short sale without lender/s approval and because most are not pre-approved, they take months to close if ever.
Many banks will not start the process to gather the data required to approve a seller's request to short sell until an offer is received. Jkonstant is correct to point out that some advertised "short sales" may not be eligible. The Realtor may not have provided the information to the seller as to the requirements the seller must meet if they expect an approval from the lender to short sell. Not all "short sales" are pre-foreclosure.
In regards to ligit short sales that will become foreclosures, I believe the answer to your question will vary from lender to lender. I know of several properties where the foreclosure process began within a few months after the lis pendens was filed . I know of sevral homes that are still on the market as a short sale 9 months after the lis pendens was filed. Still no foreclosure date.
If you have a home in mind you may want to check the public records to see if a lis pendens has been filed. This is the document that notifies all that there is an impending law suit. This is not a guarantee that the home will foreclose. If the owner has worked out an agreement with the lender, the list pendens will remain active until the terms of the agreement are met before they will remove the lis pendens.
there was an interesting time line posted on the buying board about six months ago, indicating there was almost a two year delay between loan reset date and actual foreclosure date, due to 1) trying to make the new payments, the 90 day notice requirement, and then additital 90 day requirement...
You probably should do a search, but I can't think what terms to search for.
I think short sales are fairly early in the process; it doesn't mean they are behind on payments at all; only that the debt is higher than the asset value, which can occur easily in a rapidly falling market, especially if the house was overvalued at purchase.
Most people that try to go the short sale route are trying to save their credit rating while still walking away from a bad loan. Why would they want it to go into foreclosure and lose the credit rating they were trying to slavage? Perhaps the lenders will just take a loss anyway and renegotiate with the home owner?
Some people trying to do short sales really do need to sell due to relocation needs, but may have no desire to bring money to the table to close escrow. They may end up bringing money to the table instead, or may work out a different compromise, such as holding onto the property and renting it out.
im trying to buy a "short sale".... I know that it is a lis pendens record since april,
how can i know if the lender has aproved a short sale.... the seller's agent does not answer phones call, emails... countrywide is the lender
... and, it's free and anonymous
Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy
How Long Between Short Sale and Foreclosure?
sponsored by
INTDESR
Contributions: 37
View full profile
I was curious how long it takes to go from an unsuccessful short sale to an actual foreclosure. I have seen some properties go off of the market but so far none of them have come back onto the market yet.
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.