Short Sale With A Twist.
We contacted the owner in pre-foreclosure few weeks ago.
He had one loan in default, and no equity in the house, the sale date was not set.
HOA was also foreclosing, their sale date was set.
Owner said, that he already signed a purchase contract subject to short sale, but said to follow with him anyway.
We kept following up, he kept saying, everything is going fine.
On the date of HOA sale we find out, that the house went back to the association.
We call back the owner, he thinks that he is still the owner, and the short sale is in progress....
Since the loan was recorded first, the association would have to pay it off... If we approach association is there a deal here?
What happens to the short sale, that was in progress? Is that valid?
I understand. This one is a bit more challenging. Could expers chime in.
Thanks.
Any ideas?
If the house is now owned by the HOA, the P&S signed by the original owner is no longer valid, which means that the short sell authorized by the original owner is also no longer valid.
Contact the HOA and see what are their plans and ask if you can work with them.
Brenda