Can my mortgage company foreclose during my short sale?

Can my mortgage company foreclose during my short sale?

The answer is yes, they can start foreclosure, but why would they do it?  This is normally a situation where one hand doesn’t know what the other is doing. The bank/ mortgage company/mortgage servicer can start a foreclosure proceeding at any time once the homeowner goes into default.  Normally, a homeowner starts the short sale process once they have already defaulted, so the foreclosure process can begin at any time.  short sale vs foreclosure property guidingBut what is the benefit to the bank?  Why would they spend more money foreclosing when the property is going to be sold for less than what is owed on the loan?  It seems illogical that they would spend more money trying to foreclose while another department of their organization is entertaining short sale offers.  This is a great question and there is no simple answer.

It’s possible that one hand doesn’t know what the other is doing.  It’s also possible that they will be reimbursed for all of their out of pocket costs by a third party who has guaranteed the loan?  More to come….

DELLUTRI LAW GROUP
CARMEN DELLUTRI, ESQ.
KMarshall@DellutriLawGroup.com
Download VCard
Phone: 239.939.0900
Fax: 239.939.0588
1436 Royal Palm Square Boulevard
Fort Myers, Florida 33919

Advertisements

Posted on September 4, 2013, in Legal and tagged , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

C'mon! You know you want to comment...

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: