Can a Bank foreclose if their is a contract on property

[SuzieOC]

I have had a property for sale for over 7 months, I was not able to pay the mortgage as I couldn't get it rented or sold.  BOA was informed that I was working with a realtor to sell the house or rent it which ever came first.  I finally rented the house and the rented decided that they wanted to buy the house so they put a contract on the house. In the meantime BOA sent my file to a lawyer. When I got the letter from lawyer I contacted them and asked for a reinstatment schedule, which they finally sent me after about 2 weeks, I called them and told them that I finally got the house rented and would like to work on a modification, I was told to call BOA which I did. After going over financials with them they told me that I was pre approved for a modification and would receive the documents in the mail within 7-10 days, while I was waiting to receive the documents in the mail here comes mr. server with a intent to foreclosure, and the tenants received a letter too, that day we got a contract on the house from the tenants, so they called the realtor in a panic and wanted to cancel the contract but she was able to talk them out of it, I immediately called the lawyers and asked them what was going on that I have been preapproved for modification and was told that BOA never notified them so they will continue with what they have to do.  WE are suppose to  close by end of December but the tenant is getting the money for downpayment from the government and she needs to attend a class prior to closing and she hasn't, she keeps cancelling - I think they are trying to get out of the contract so they can try and offer the bank a much lower price.  What do I do, can the bank foreclose with a pending contract and what should I do about the tenant not doing their part to get the loan closed.

[LyonelK]

Suzie,

If the bank forecloses on the property it will go to auction. There is a big percentage that someone could buy it there and the tenant will never even have a chance. Also if the tenant wants to buy it at the auction they need cash. So there is a huge chance that even if they wait they will not even get another chance at owning the property.

Another reason as well that a lawyer still was assigned the borrower was served was because it sounds like you are in a judicial foreclosure state. Meaning that once foreclosure proceedings have begun that they will not stop unless a modification is completed or a short sale is approved. It does not sounds as though either one was completed and so the bank will continue the foreclosure process.

It is very important as well to know that the lawyer and the bank are two separate entities and they are not in constant communication, they do not notify the attorney that you are doing a short sale or modification until it is complete.

Good Luck, have a great day!

[Summit]

Meaning that once foreclosure proceedings have begun that they will not stop unless a modification is completed or a short sale is approved. It does not sounds as though either one was completed and so the bank will continue the foreclosure process.

You can stop ANY SALE DATE! If there is a contract on the property. Does not matter what State or which Lender. As long as you are not doing it the day of the sale. Even then it can be done if you are good at what you are doing. Generally you need to have 5 business days before the sale.

It is very important as well to know that the lawyer and the bank are two separate entities and they are not in constant communication, they do not notify the attorney that you are doing a short sale or modification until it is complete.

That is why you need to know who the Attorney is and keep in contact with them yourself.

[LyonelK]

Summit she did not refer to a sale date. She referred to being served. They are both different. You can be incontact with the attorney, but unless it is an emergency it is a waste of your time.

The bank will notify the attorney of anything being done that will change the course of his work.

BTW you cannot stop any sale date on a home if you have a contract, there are certain scenarios in which even if the lender has an offer they still will not post pone. Everything must be done in manner that is correct, and all lenders have different rules.

Also to make is clear a sale date is only a step in foreclosure proceedings. What I mean by this is that yes a sale date can be postponed, that does not mean that the lender stop proceeding you. Thus even if you are working on a short sale and have an offer they will still serve your homeowner a court date.

[Summit]

Everyone please follow his advice this will work if you want to close 50% or less of your files. If you want to get them done though be pushy and diligent. And you will close 90% or better!