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Q&A: Can a lender agreeing to short sale keep you out of foreclosure?

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Question by treehugger_06: Can a lender agreeing to short sale keep you out of foreclosure?
My coworker is in short sale with his lender. I am familiar with the Mortgage Debt Relief Act of 2007, but I don’t know if he is in short sale trying to sell the property, if the bank can foreclosure in the process. He is about 2 months behind on the notes. He has about 20 more days before he’ll be 3 months. Does the fact that he is in short sale agreement with the lender keep him from foreclosing? I told him it is better if he can get the short sale to occur rather than foreclosing.

Best answer:

Answer by wizjp
If all the lenders agree to go forward with a short sale agreement, that by definition supersedes a foreclosure action.

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  • bud68

    That is the whole idea of a short sale. But the lender must agree to it to stop a foreclosure.

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