I have a client (with US Bank 1st mortgage only and no MI), who is worried that if he discloses his financials to try to complete a short sale AFTER the sheriff's sale, that the bank will stop the redemption process and sue him for Judicial Foreclosure.
Public notice has already been published but the sheriff's sale has not yet happened. We would not list the home until after the sheriff's sale. I'm not a lawyer but it seems like a bank couldn't complete a sheriff's sale and begin the 6-month redemption period and then change the course to go for a judicial foreclosure, right?
Background is that the seller has a hardship (he must move to take care of his ailing father who is in poor health but not terminal). He also will not have a job when he moves, but had a very nice one before he resigned to move. He's got $50K in the bank but that is what he'll be living on until he gets a new job.
The most the bank can do is deny his short sale, right? They can't come after him for the deficiency, right? After all Minnesota is a deficiency free state when public foreclosure is used.
I need some guidance here since he won't list if there's a chance that the bank can change direction after the sheriff's sale.
Thanks!
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We closed it on Tuesday and the seller actually walked away with a small amount of proceeds. I wonder why banks haven't caught on to bidding 10% below traditional market value at sheriff's sale. That would make so many people's lives so much easier.
Definitely a question he needs to ask an attorney. I wouldn't even attempt to answer this question for him.
We solved this problem with luck! Seller's lender bid low enough at sheriff's sale that we're now on the market in the hopes of selling traditionally. Let's hope it sells!