HELP!!!!!! Problems with a Short Sale (Possible Sales Lead for Indiana)

Education & Training with REISA - 317-663-4173

Hey Folks!Happy Couple

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.short 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).

dream homeDid 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 saleforeclosure 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

Best regards,
Tony Grego - Indiana Mortgage Company







 Not my real picture.


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Raquel McPeek
I can understand how frustrating this is for you and your clients especially when they love the house. First, is there a foreclosure sale date or has the lender just recently filed for default? Regardless, there is still time. I am not  familiar with Indiana's foreclosure process but in Ohio the homeowner owns and can sell up to the auction date. It is not unheard of for the lender to postpone the sale if the offer is in their best interest. Second, has the listing agent submitted all of the information that the lender requires including the purchase offer to both of the lien holders? The second lien holder will need to give their figure to release and that must be submitted to the first lien holder for approval as well. I would contact the listing agent to verify that he or she is staying on top of the sale. I find that you really need to be persistant with these lenders to get anything done. As for buying it bank owned after the foreclosure sale, there is no guarentee that the plantiff (lender) will win the bid if there are other parties interested in the property, therefore your client may not have a chance to buy it as an REO or bank owned property. I would start with the listing agent to make sure ALL the appropriate and nessessary paper work has been submitted to the lenders and that they have a contact/negotiator assignd to work the file. The third party is not a major issue. Instead of hiring a staff for a short sale/loss mitigation department within the lender they contract to a third party but the lender has the final say. Time is of the essence. Call the listing agent to follow up. Hope this helps and bestof luck!
Apr 03, 2008 11:06 AM #1
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Thanks Raquel

Indiana is like Ohio with selling right up to sale. Now this home is not in foreclosure, it is going into fc. Love what you stated about the selling agent.  This is the angle I will work.


Thanks  again


Apr 03, 2008 03:38 PM #2
Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales
If the offer is to the bank's advantage, they will postpone the foreclose. The market's not going up yet is it?
Apr 03, 2008 04:51 PM #3
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Thanks Ann

The clients have offered more than the listed price and would close today if they could. Now I have heard that prices are going up but I still not heard of anyone offering over list price in Indiana lately


Apr 03, 2008 06:24 PM #4
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