Losing a Sale to Foreclosure? Get a Postponement.

March 3rd, 2008

It’s not uncommon that Realtors, or real estate agents in general, lose a sale because the property is going or went into foreclosure. I often ask the agent selling a property, “What are you doing about the foreclosure?” These are a couple of the common responses:

It’s already under contract…

Well, that contract is between the buyer and seller. Theoretically, I could write one on a napkin, have them both sign it, and make everybody feel good that the foreclosure has been stopped. Don’t get me wrong, I understand what was meant by “already under contract” but that contract may not do the trick - and it’s not something you want to play around with either. It can be tricky matching what the buyer and seller agreed to with what the mortgage company and their investor wants. The process is pretty specific for getting a postponement.

We already have a closing date…

It may seem that all is well when your closing date is before the foreclosure date. However, what happens is that the loan doesn’t get funded until the day, or a few days, after the foreclosure. It may seem like a simple task to ask the mortgage company to stop the foreclosure but we all know that’s not always the case. There are many factors that are really too complicated to get into here. However, what I do (in overly simplistic terms) is go around the buyer’s wants and satisfy the mortgage company’s needs just long enough to get the postponement. Unfortunately, this is a sort of ‘trick-of-the-trade’ so you will have to call me to discuss it further.

Cliff Pape
Home-Buddies
(888)933-0332

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Thrifty Buy Property in Houston » Blog Archive » Losing a Sale to Foreclosure? Get a… said,

March 4, 2008 @ 9:41 am

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foreclosure book said,

March 22, 2008 @ 9:15 am

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Many times, you will become surprised by the colossal quantity of how to stop foreclosure intelligence handy.

admin said,

March 22, 2008 @ 10:47 pm

Thanks for the comment. I see you have an ebook, I will have to take a look at it. I was thinking that would be a good idea. :)
-Cliff

admin said,

April 3, 2008 @ 1:37 pm

Thank you, you were right so I made some tweaks. I think I had just gone through that scenario with an agent when I wrote this. I wrote that they can get irritated because they get really adamant that when a property is under contract the foreclosure has already been avoided or that they just have to close before the foreclosure date.

That is probably true when it is under contract by an investor. An experienced investor will have it postponed to give their loan time to close and fund.

Anything other than an experienced investor and things get more complicated in a hurry. I have seen so many of these transactions fall through…

Darren said,

April 6, 2008 @ 2:57 pm

In the beginning I wasn’t sure about your blog. But now it is great. I hope you gonna keep writing that way.

admin said,

April 6, 2008 @ 4:09 pm

Thank you Darren. I’m not too sure what exactly has changed but in the beginning I was just putting in filler to get the formatting right for the site. For instance, I don’t have anything in the Loan Modification section yet. It’s just a definition right now for filler.

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