Profile picture for adhocusage

How to keep the house if the bank rejects short sale?

I have listed my house for short sale and have a buyer. The documents have been submitted to the bank and it has been more than 40 days and have not heard anything from the bank. I have made it clear from the beginning that if the bank does not give the verdict by 12/31/2012 i am pulling out the short sale ( i have two loans). The buyer agent and the buyers are aware of it and a short sale addendum had been added. I don't mind going through the short sale if the lenders approve it but in case they don't and the government does not decide on extending the mortgage forgiveness act, i want to pull it out. What happens if the bank rejects my short sale? Does it automatically mean it leads to foreclosure? what if i make attempts to pay the past dues and tell the lender that i want to keep my house? This is in California.
Thanks
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December 10 2012 - US
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Profile picture for adhocusage
>In essence although you have an offer, your bank has not approved your >short sale.  Nowadays most bank will try to offer a loan modification prior >to the acceptance of a short sale.  Who is doing the negotiations with >your lender?

Currently bank is still reviewing the statements. So far i have not received any information regarding Loan Modification.
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December 11 2012
In essence although you have an offer, your bank has not approved your short sale.  Nowadays most bank will try to offer a loan modification prior to the acceptance of a short sale.  Who is doing the negotiations with your lender?
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December 11 2012
Profile picture for adhocusage

I have not done loan modification so far .. bank is still in the process of asking for documents and reviewing.
My realtor should be pulling out the listing as of 12/31/2012 if the bank does not decide by then. The buyer and buyer agent is aware of that. The agreement has been signed regarding the same.
What i am confused is whether i can contact the bank now to tell them i want to keep the house. Can the buyer come after me if i do that? Will the addendum take care of it?
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December 11 2012
I am a bit confused.  Has the bank accepted your hardship (whatever it was)?  or is the bank processing the information you send to them to see if you qualify for a short sale?  Did you try to obtain a loan modification before doing the short sale? 
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December 10 2012
Banks are in business to make money. Banks really do not want to foreclose on a property and loose money on a loan. Chances are very good that your lender will be willing to work with on paying past due payments ... they may even be willing to forgive some late charges and fee's.

But you also have a contract with a buyer on your house. Is there an expiration date on the purchase offer? If you just cancel the contract you might be obligated for fee's to the realtors.
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December 10 2012
Profile picture for wetdawgs
I'm not 100% sure I'm following, therefore, forgive me if I seem muddled. 

Are you suggesting that you aren't paying your mortgage payments presently?    If you cancel the short sale, most likely your lender will work with you if you pay the past due payments and all penalties promptly.   There is no reason you can't contact them now on the subject. 

Have you qualified for a short sale by submitting a letter of hardship to your lender, or are you hoping that you qualify because you are underwater?

If you wish to make sure to qualify for the mortgage debt forgiveness act etc that may end at the end of Dec, then the sale will have to have closed by 12/31/12.   I've not read any politics for the last few days so can't speculate on the chance of it being extended.

Good luck.





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December 10 2012
 
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