Can Lender Sell Home Even If Owner Does Not Accept An Offer?

Today an agent in my office asked for some advice and I was stumped. She is representing a buyer on a short sale property. The listing agent has told her that because the seller has missed so many payments if an offer is presented and it meets the lender's net desired the bank can accept the offer and sell the house even if the seller has not accepted the offer.

I know the listing agent and know she's been doing short sales longer than me but that didn't sound right but, hey, what do I know.

All I could tell my co-worker was that if the bank could do that why would the lender need to go through a legal process to do a foreclosure.  My understanding was that as long as that deed is in the owner's name the house is theirs and it can't be sold until it's foreclosed on.

I'm sure with all the cumulative experience in this forum somebody has have to come across this before if indeed it is true that the bank can sell the house from under the seller if he has missed so many payments.

Please set me straight on this.

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Permalink Reply by Noelia Bendigo on March 21, 2012 at 12:09pm
I can't wait for replies. This cannot be.
Permalink Reply by Joseph Alfe on March 21, 2012 at 4:47pm

there is ZERO percent chance that this can happen unless the property has already gone to sale and the deed conveyed back to the lender.

Permalink Reply by Julissa Jumper on March 22, 2012 at 3:35am

Thanks, Joseph. Appreciate your input. I thought that was the case but since she's been doing these longer than me I thought maybe she knew something I didn't.

 

Permalink Reply by Smitty on March 22, 2012 at 4:47am

LMAO...Julissa, I find it hard to believe she has been doing these at ALL.  I find every agent tells me they have done a ton of short sales and know what they are doing,  yet come to find out there are really a very small amount that do know what they're doing.

Permalink Reply by Jeff Payne on March 22, 2012 at 5:49am

Smitty, I got schooled last month by a short sale expert.  She was determined to tell me exactly how a short sale is processed.   She told me exactly how she does it and she said that she is an expert.  As the discussion on the VA short sale got deeper, I could tell that she had no idea that VA actually had real guidelines.  She told me that I was doing it wrong and misleading because the bank is supposed to set the list price for us and that her offer must be approved since it was for list price..... the funny part came when we argued a bit and she said "Well, it worked that way on the TWO that I closed"   Key word TWO :)

Permalink Reply by Smitty on March 22, 2012 at 6:24am

I know.  I got into it yesterday with an agent who hadn't even listed the property but was going to call the bank to "get it approved" She told me she had done short sales before.  I asked her, "What exactly are you getting approved if you haven't even listed the property?" - Said the short sale....BWAAAHHHH HHAAAA... OK.  Anyways, I told her that they won't approve anything until there is an offer.  You have NO leverage without an offer.  Anyways, she quickly got off the phone with me. 

 

I'm at disadvantage because agents who don't understand 3rd party mitigation, think I'm STEALING their listing in some way.  It cracks me up.  I can tell in the first two minutes if we have a sale or not. 

 

It's hysterical.

Permalink Reply by Jeff Payne on March 22, 2012 at 5:50am

The listing agent that said this should be forever banished from doing short sale again.   I would be having a discussion with my broker ASAP because the listing agent could cause long term financial harm to this seller.

 

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