Does A Short Sale Stop The Foreclosure Process?

Will a Short Sale stop my Foreclosure?

Many homeowners would like to know if initiating a short sale with their lender will stop the foreclosure process.  The answer is no, but they may postpone it.  Most lenders have different departments that have different tasks assigned to them.  One task would be proceeding with foreclosure, another task could be reviewing and approving short sales.  Typically, these departments are separate from one another and oddly enough, they don't talk to one another.

As strange as that sounds, the lenders are not business machines that are good at efficiency.  I think that is well documented considering how long a "short sale" actually takes.  Remember, lenders are in the business to make money on interest.  As large as the lenders really are, they are mostly understaffed and overworked in the short sale department.

However, if your lender thinks that the offer on your home is within an acceptable value to them, your lender may postpone the foreclosure process.  We see this happen prior to the sheriff's sale, but after the short sale package has been received.  By postponing the foreclosure process, they have postponed the sheriff's sale.  In past experiences, if the short sale cannot be approved or the terms are unacceptable to the buyer or seller, they will initiate that action again.

Remember, the foreclosure process is just a process here in Minnesota.  You have time to successfully submit a short sale for review and approval from your lender.  See the article regarding Short Sales Vs. Foreclosure for some positives and negatives to each.

So what can you do if your home is headed down the path of foreclosure and you want to explore the possibilities of considering a short sale?  It's simple really, contact us at the Twin Cities Short Sale Realtor and we'll work endlessly to get your sale approved.