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What are the reasons why homeowner would rather have a foreclosure than do a short sale?

Saint Paul, MN |

I want to purchase the townhouse I'm currently renting however my landlord/the homeowner doesn't want to do a short sale. The bank has yet to foreclose but the HOA has. The landlord says the bank is piggy backing off the HOA foreclosure and that's why they haven't started the mortgage foreclosure. Doesn't the bank still have to file a foreclosure and do a sheriff sale? I was hoping to get the extra 6 month redemption period to try and figure out how to purchase the property without having to move out then move back in after the bank puts it on the market.

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Attorney answers 2

Best Answer
Posted

Remember you also have time under the 2009 federal renters legislation. Tenants have the right to stay in their homes after foreclosure for 90 days or through the term of their lease.The protections expire at the end of 2012.

The HOA likely has a lien. If I were you, I might consider talking to them and seeing if you could buy it from them, then do the sale yourself. Consult an attorney familiar with these laws.

Posted

I wouldn't expect that the HOA is foreclosing, maybe suing for the debt but that's different. If the owner/landlord is collecting rent and not paying the mortgage- pocketing the money - you have your answer.

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