Home / Short Sales / Can the bank foreclose if you are involved in a short sale? Episode #242
Can the bank foreclose if you are involved in a short sale? Episode #242
Todd: Hello! Welcome to Todd Miller TV. Joined here today with Las Vegas Short Sale expert Amanda Brown. Thanks for being here. Amanda: Thank you. Todd: Okay so, this happens all the time, as you’re aware and you’re all aware, I do a lot of REO, Oana does a lot f REO, and it’s surprisingly, maybe a third of the REO assignments we get, when we go in the MLS, they’re listed in contingent status as a short sale. So why is it that when they are involved in a short sale that they skip foreclosed on? Amanda: The banks do still continue with their foreclosure process eventhough you’re in a short sale. So it’s very important for your Real Estate agent if you’re doing a short sale, to continuously keep checking with the bank and ask them “Is there a foreclosure sell date set.” In our office, on all of our listings not only the ones I have offers in but all of our listings we check like once every weekend or half. ‘Cause the banks like I said, they will/doing s short sale does not stop your foreclosure. It’s up to the investor on whether they will allow to postpone the foreclosure or not. But it does not stop your foreclosure. They still can foreclose so your agent has to be on top of checking with the banks. Also, the bank will send you paperwork in the mail. They’ll send you if it’s investment property, they’ll send it to the investment property, they’ll send it to you personally, they’ll post notices on the door, do not ignore this paperwork especially if it’s notes posted on the door. You’ll get multiple copies of it. I think the average number is like 10 to 20 copies in the mail. Todd: Right. Amanda: Don’t ignore those. Let your agent know about them. So your agent can call the bank and ask them if they can postpone the foreclosure sell date. It’s very important that you do this. Again, though postponement of a foreclosure sell date is not a guarantee. it’s up to your investor who owns your note on your loan on whether they will grant the foreclosure postponement or not. Usually after 3 postponements, it gets difficult to postpone again. Todd: Okay. Amanda: The reason why on the 3rd one your agent or you may loose asking for a postponement is because in the State of Nevada, when you run through a non traditional foreclosure, where they do the notice of default instead of foreclosure sell date, after they postponed it the 1st time, they do not have to go back and do any extra paperwork. It cost no money for an investor or a bank to postpone a foreclosure sell date once. Todd: Right. Amanda: Does not cost them any money to do it the 2nd time. After the 3rd time they have to start over on the foreclosure process but no notice of default. Todd: Right. Amanda:So usually, on your 3rd request, you’re gonna have a difficult time, and that is why ’cause then it will kick in, costing the bank more time and it cost them more money. Todd: Okay so, the thing that I see a lot here in Las Vegas is somebody who will get/they will get a posting on their door, and then they’ll call or send it in and say “Well, it’s a notice of trustee sale. In 28 days they’re gonna sell the house. I wanna do a short sale.” Is that/I mean, is that possible? like what’s the shortest time frame? Does somebody called you before the sale date, and then you actually have been able to make a call to the bank and have that postponed. Amanda: i think the closest timeframe I’ve done is like 48 hours. Todd: 48 hours, so 2 days. Amanda: It’s not/Yeah! 2 days. I do not recommend it. It was very hard to do. Luckily, it was with the bank that I had a lot of connections with. So I did not actually fax things in. I just e-mailed things in to the Vice President’s office. That’s the only reason why we were successful. If it was another bank where I didn’t have the connections with like I did at this particular bank, we would have probably lost. I don’t recommend waiting that long, it’s very very difficult. Todd: Okay, so you obviously are very well known in the industry among the banks and you have a lot of good contacts, and somebody/I’m guessing somebody’s agents who are getting foreclosed on don’t have the ability to get those sale dates moved like you do. That’s a huge probability, that’s huge. Amanda: It is huge, yes! Todd: Okay. Awesome! If somebody wants to do either a short sale or just talk to you about doing a short sale, how do they get in touch with you? Amanda: Call me personally on my cellphone at 702-496-7416. I do work on weekends and evenings, so feel free to call me anytime. Todd: Awesome. Thank you! Amanda: Thank you. Todd: Alright, so that is my update for today and hope to see you on another video. Thanks!