Buying our first home that is in foreclosure, why is it taking so long?
February 16th, 2010 by Jarad S.
Question: My husband and I are in the process of buying our first home and we are very confused as to what is going on and no one can help us. Here’s the situation…We put in an offer on a house and the offer was accepted after negotiations. Within 2 months the house went into a short sale because the owners did not have the money. Since then (it’s been 6 months) Bank of America has reappraised the home and put it into foreclosure (or so I’m told). Our real estate agent said that they can get the foreclosure postponed…What does this mean? Can they foreclose on a house that has an offer on it? Would this mean that the contract is no longer valid? I would appreciate any help you can give us. Thanks!
Answer: - It sounds like you made an offer to the bank for less than what is owed on the property, which is a short sale. And from what you say, the bank accepted the offer but there may have been some other requirements from the initial seller in order to get everything approved. As a buyer, it’s not uncommon to wait for MONTHS and if you are patient enough it could even be a year or more before you are able to buy a property in foreclosure. This is all because of bankruptcies, settling with 2nd and 3rd lien holders, uncooperative sellers, etc. To answer your question, yes, the bank can foreclose on a property even if there is an offer because they are waiting for certain requirements to be met. Yes, they can postpone the foreclosure auction as long as the bank sees a legitimate reason to postpone. Don’t give up. Keep working close with your agent, I’m sure they are on top of the situation…Just don’t be surprised in you have to wait awhile. Most home buyers get frustrated waiting and move on to another home. Good Luck
