Most of my regular readers know that I've been renting a house that is 1) up for sale and 2) is going through the process of being a Short Sale. The owners - my landlords - had been struggling to pay the mortgage and decided around the first of the year that they would try to sell the house, provided that their bank, Indy Mac, approved a short sale for the lower appraised value of the house.
For the past five months we've had open houses and showings and went through the first round of buyers, who eventually backed out because it was taking so long, and then we went through another open house which gave us two more buyers who are willing to wait for the very long time it takes to go through a short sale. I've been waiting for a few months now to find out that the lender has approved the short sale and to give me my proper notice for me to move out. Today I got a phone call from the realtor, and he had some news for me, except it wasn't the news I was expecting.
The bank foreclosed on the house.
Apparently this happened about a week ago. Without notifying the owner (my landlord) or their realtor.
Things can get kind of sketchy when you're hearing things second hand, but it sounds like the bank decided to go ahead and foreclose even though a short sale was in process. This may have been because they got a better deal from someone, or they figured that they would get some kind of rebate from their insurance company. Banks and lenders, if you don't know this, have almost no incentive to do a short sale on a house. On the other hand, if they foreclose on a property, many times they are reimbursed for some of their losses through their insurance company.
So. What this all means for me is that I'll have to plan on moving perhaps sooner than I expected. Or not. They still have to send me official notice that the bank is now the owner, and provide me with information and give me the opportunity to go through the court system for eviction or give me "Cash For Keys," which means they'll pay me to move out sooner. So I could be out of this house as soon as 30 days, or as long as 60, or maybe even more. Fannie Mae is involved and they're all backed up like a sewer, according to the realtor, so who knows how long it will be before I get that notice.
One things for sure...I do NOT want this to all happen around the end of July because...that's when Pulp Fest is happening! Aargh!!
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