Really need some help with this one. Sorry if its gets boring but I want to be detailed here to help the client.
I have a client that is a long time personal friend. They are well qualified borrower's and have found their perfect home. It is located in Brownsburg, IN (this is for folks that may have listings that might work).
Here is the deal:
Seller purchased home in September 2005, First mortgage with Flagstar for $251,000. Seller takes a job out of the area and list for sale.
House on market a while. Need to sell. Now it is listed with Keller and Williams as a short sale for $233,000. Another third party is involved (Guardian) that is to "work" the short sale (for the bank I guess).
Did I mention that the buyers have found their dream house, are well qualified, and put a offer in at $237,000. Now everyone is aware that these can take a while. My buyer is OK. In fact we put an extended rate lock in a few weeks ago when rates dipped.
Today I meet with the buyers for a update. Here is were it gets messy.
I read a email that the house is going into foreclosure. I also learn that the home has a HELOC (I do not know lender or dollar amount).
While I have experience with short sales and foreclosures I have no experience with a house listed as a short sale going into foreclosure.
I did advise my friends that they may need to look for another home.
So, any ideas on what to do?
1. Any hints on how to push the sale.
2. Should they select another home.
3. They can wait under it goes to foreclosure and then buy "bank owned" or foreclosure sale.
Please let me know of any action I can do to help my friends and client
Tony Grego - Indiana Mortgage Company
Not my real picture.