When a home or condo has had the foreclosure paperwork filed with the court, but that does not mean the home or condo is for sale to purchase at this point. The seller has the right to make things right with the bank between now and the time the home or condo sells at the sheriff’s auction. That process between the time the foreclosure is filed and the time that the home or condo goes to sheriff auction can take 6-18 months in Franklin County, specifically Columbus, Dublin, Lewis Center & Worthington areas. (As of time of article in April 2010).
The one thing that can happen between now and the auction is the homeowner can sell the property as a short sale. This means the seller would be selling the home or condo for less than they owe to the bank. In this case the bank must approve this amount and it can sometimes be a very long process (I have seen it take 6-8 months to get bank approval). Some banks are now using a new system called “Equator” that has helped to streamline the process and increase communication. This new system has drastically cut down the turnaround times but each home is different and you could be dealing with multiple mortgages and multiple banks on one property.
Please feel free to call me or email me if you would like to discuss this process further.
Keller Williams Capital Partners