One of my agents is in a transaction and the property is in foreclosure. His buyer is trying to close on the property before it gets foreclosed on. He asked, “What happens if the property gets foreclosed on while we’re still in escrow?”
They are scheduled to close on the house on Monday, but on Monday at noon, the house is scheduled to be foreclosed on.
If the bank forecloses on the property before you are able to record the closing on the property, then you will lose the house to foreclosure.
One of the things that some sellers have done to freeze the property is file for bankruptcy. I am not suggesting that you file for bankruptcy, but if you are in a situation like this, talk to a bankruptcy attorney and see if this is an option for you. I have seen other sellers do this if they have a foreclosure.
Since this property is scheduled to close on Monday, we just need a couple extra days. If the bank is not willing to allow them that extension to close, they could file for bankruptcy. When you file for bankruptcy, all of your assets are frozen, which means that even if the bank wanted to, they could not foreclose on your property.
Talk to a bankruptcy attorney to see what your options are.
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Talk to a bankruptcy attorney to see if this option would work for you.
If you are facing foreclosure and are interested in selling your property or want to know what your property is worth, I can definitely provide you with a market analysis. A lot of people in foreclosure don’t realize how much their property has gone up. They don’t think they have enough equity to sell when they actually do.
If you have any questions, just give me a call or send me an email. I would be happy to help you!
