Accepted Answer

Dear XXXXXXXX,

 

A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage.

 

Be aware that the seller need not be in default -- to have stopped making mortgage payments -- before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.

 

Coming to your question, If you have the paper work showing that the lender would postpoe the fore closure, he is not legally obligated to do so. The seller or the lender may decide to cancel the listing. A foreclosure may take place, preventing the short sale. There are occurences that even the "Signed" short sale contracts are terminated by sellers / lenders due to many reasons.

 

So , if you have paperwork showing that the lender shall postpose foreclosure, you may dispute it but your chances are grim. The best person to guide you through ins and outs of this would be an real estate attorney.

 

I hope the above helps...

Regards,

Edited by Milan Vaishnav on 10/27/2009 at 7:32 PM

Expert:	Milan Vaishnav
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Answered:	10/27/2009

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