Friend Foreclosure

Fannie Mae and Freddie Mac (Streamlined and Standardized) Short Sale:

While the property is on the market and while the transaction is being negotiated, the foreclosure process may move forward.
The servicer will determine if the foreclosure process should be suspended based on how much time prior to the foreclosure sale date the package is received. The listing agent or the borrower’s/seller’s attorney should verify whether the foreclosure sale is being postponed.
Once the short sale has been approved, the servicer must suspend the foreclosure sale to allow the short sale to close.

FHA Preforeclosure Sale (PFS):

Once the borrower has been approved to participate in the PFS program, the FHA will allow a postponement of the foreclosure sale for 120 days.

U.S. Treasury HAFA Short Sale

The servicer may initiate a foreclosure action or continue one that is in progress but may not bring the property to a foreclosure sale from the time the borrower’s/seller’s eligibility is being determined through the closing date.

Non-GSE Traditional Short Sale:

The foreclosure process may move forward while the property is on the market or an offer is being negotiated. The timeline could continue even after the short sale has been approved. It is imperative that the listing agent or the seller’s attorney work with the servicer to stop the foreclosure clock from reaching the point of a forced sale (foreclosure) to allow the short sale to close.

VA Compromise Sale:

It is imperative that the listing agent or the borrower’s/seller’s attorney work with the servicer to stop the foreclosure clock from reaching the point of foreclosure to allow the short sale to close.