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Will a short sale stop the foreclosure on my house?

  • February 19 2010 - Enterprise
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Answers (14)

Best Answer

The answer is yes. Just keep in mind that the short sale does not start until you have a buyer under contract. Listing your house with a short sale specialist does not stop the foreclosure, you need an offer to start the process with the bank. Once you get that offer a foreclosure sale can be postponed.
  • February 19 2010
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Yes and No... you will need to list the property with a Short Sale Expert, you will need an offer which needs to be submitted with a full short sale package to the lender... Your Agent or whoever is negotiating the short sale needs to keep a close eye on the foreclosure sale date and needs to get the sale postponed throughout the short sale process.

Omid Shahabe
Keller Williams Southern Nevada

  • August 05 2010
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Initiating Short Sale can put the brakes on Foreclosure... however, much will be determined by your individual circumstances and where you are situated on your lenders' foreclosure time line (e.g., have you received a Notice of Default?).

Keep in mind that in order to Short Sale, you will need to prove financial hardship to your lender.  A decrease in property value does not constitute as a financial hardship.  It must be related to circumstances such as loss of employment, decrease in income, etc..

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  • August 05 2010
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Yes a short sale stops the foreclosure, but be careful because in some cases, I have seen the auction date stay entact.  If your closing is delayed past that auction date, some banks will still foreclose on that auction date and refuse to cancel or postpone it.
  • July 13 2010
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Yes!  You must have a sales contract to submit to your lender.  The contract cannot be from a family member.  You must have a listing history with your realtor showing the efforts made to sell your home.  You also must provide proof of a hardship (lost job, lost spouse, no assets, etc). 

A short sale will satisfy your lender and show on your credit report as the mortgage was paid off.  A foreclosure on your credit report will haunt you for many years and limit you ability to obtain credit for a very long time.
  • July 13 2010
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If you ask it like this,

Will a "SUCESSFUL" short sale stop the foreclosure on my house?

The answer is yes.

And of course an unsuccessful short sale would result your house being foreclosed.

  • July 13 2010
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Depends on a few things... If you send me your address through HomesIn702.com I can tell you where you are in the foreclosure process.

Yousef A.

  • July 12 2010
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yes and kinda no.. depending on the bank... even with a short sale in process (you found a buyer, both agreed to terms and have submitted to the bank(s)) the foreclosure may be stalled ... and reinstated.... I have one that gets a 30 day stay, every 30 days and this has been going on for 5 months now... they just can't figure out if they want to consumate the deal and there is no fast way to a short sale each is individual as a fingerprint... even in the same bank system...
  • July 06 2010
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Yes BUT you must inform the bank.
  • July 02 2010
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At this current time in California, lots of homes in short sale process has been foreclosed. If Notice of Trustee Sale has been filed, the bank reserves the right to proceed with the foreclosed sale unless the actual short sale approval has been granted. So Agents, continue to check on the status of the property with the Trustee.

  • July 02 2010
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It's really up the your Realtor to make sure the property that is listed as a short sale does not go to auction in foreclosure...presenting a valid offer acceptable to your lender in a timely manner is cricitcal.  Often the property sits in a timeline...if an acceptable offer is not received by your lender they will foreclose.  If you're in danger of losing your home, contact me now.
  • February 20 2010
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the Short Sale in itself does not stop foreclosure.  BUT supplying the lender with their required info to request a Short Sale is a GREAT first step
  • February 20 2010
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If the bank agrees to the Short Sale, and the deal is done, the foreclosure stops.  However, banks are not as willing as many will have you believe to actually accept a short sale.  This can be a tough road, I wish you well.



Also, talk to a tax professional about possible 'gains' from a short sale.  You will not be allowed to walk away with any cash from a short sale, but the IRS might consider your sale as a profit IF you sell the house for less than you owe (IRS may consider the difference as profit).  
  • February 20 2010
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They will usually finish most of the process, but postpone the foreclosure if you submit a valid offer with the Short Sale package.
  • February 19 2010
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