If my house is in foreclosure, can I still agree to a short sale with the lender before the date of auction?

Question by ~M~: If my house is in foreclosure, can I still agree to a short sale with the lender before the date of auction?
Can I do a shot sale even after the date of auction has been set? Also, if my house is foreclosed on, can I leave stuff I don’t want to take with me? Can I sell the attachments that came with the house, like for example, the dish washer, oven, stove, etc before the house is sold?

Best answer:

Answer by golferwhoworks
that is up to the lender if they will allow a short sale. You can leave what ever but they will include the cost to remove it in your judgment. No you cannot sell the items attached to the home as they are affixed and belong to the home. But if you do they will add it to your judgment as well. Sound like you do not give a s–t what you do and tearing up this home means nothing to you. But it will when you have to pay the balance owed in garnishments and 1099 taxes owed to the IRS so go ahead and do as you please

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One Comment/Review

  • R W says:

    Laws vary from state to state… but in my state

    Technically the house is yours until auction, and even after that many states allow a redemption period after auction. You may do with the belongings in your home what you wish. what is being foreclosed upon is the “Real Property” which consists of the land, the attached buildings and certain attached fixtures. Typical ovens, dishwashers, refrigerators are personal property and may be taken.

    I’m sure that the bank would love for you to arrange a short sale before auction! It will most likely cost the bank more to follow through with foreclosure, than what they would lose in a short sale situation. I have seen a homeowner go to court and get an injunction to stop foreclosure proceedings because an investor was fond to buy the home just a few days before auction. The judge granted the injunction to stop the auction and a short sale was worked out.

    In response to the answer above mine… It depends on the state in which you live, but it is usually very difficult for a bank to obtain a deficiency judgment, and in many states nearly impossible. A deficiency judgment allows the bank to sieze your personal property to recover the difference between what you owe on the home and what the home was sold for at auction. At any rate, the items you mentioned selling are not fixtures, and are certainly personal property that you may ethically sell or remove when you move. I doubt that the bank would have any recourse if you left any items that you did not want, but that is an ethical judgment that you will have to make for yourself. Whenever anyone faces forclosure i always reccomemd that they seek advice from a lawyer in their state.

    Good Luck!

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