How much time do I need to stop my foreclosure?

18 Jan

Hourglass in Bank

Do I have enough time to stop my foreclosure?

In a perfect world we would prefer 30+ days before a trustee sale to give us enough time to list the house, get an offer and submit the short sale package to the bank in order to give the lender enough time to postpone the trustee sale.

Unfortunately we rarely live in this perfect world.

We have, in the past, managed to get a trustee sale postponed with a 2 weeks notice.   Back in November 2010 we received a panicked call from a prospective client who owned a property in Elk Grove, he had received a “Notice of Trustee Sale” while he was out of town and was now running really short on time. We had approximately 14 days until the trustee sale at this point, so we sent over listing papers and got the property on the market in 2 days.   Held an open house that weekend and received multiple offers over list price.  We then submitted the entire short sale package to Bank of America 7 days before the trustee sale.  With 2 days to spare Bank of America informed us that they would postpone the trustee sale for 2 months!

So while we would certainly prefer to have more time with which to list and market the property; then receive a good offer and prepare the short sale package; we don’t always have that luxury.

Keep in mind that even while you are attempting a loan modification your lender will typically continue the foreclosure process. Don’t be surprised if you receive a “Notice of Default” while attempting a loan mod, or even if you are on a trial loan mod. Don’t be surprised if you receive a “Notice of Trustee Sale” while…… Your lender wants to make absolutely sure that if they end up denying your loan mod for whatever reason they can think of that there will not be very much time lost getting your property sold at a trustee sale.

If you are currently attempting a loan mod, or even in a trial loan mod it would be in your best interest to stay on top of where you are in the foreclosure process (see diagram here for more detailed information on the foreclosure process) if it starts to get down to the wire… ie. you could receive a Notice of Trustee Sale any day… find a qualified real estate professional with a proven track record as an expert short sale agent and be ready to list your property as a short sale…  that is unless avoiding foreclosure is not your number one goal.

In summation, I would say that to stop a pending foreclosure it would be good to have a minimum of 30+ days prior to any Trustee Sale date, however if you have less time do not despair, just make sure you find someone qualified, who understands how the banks work, to handle you short sale.

If would like more info on the timelines involved and whether or not your loan mod may be approved give me a call today 916.585.3636 or you can always email me Peter@PeterParkerTeam.com

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