Dual Tracking, the lender practice that occurs when the collection side of the bank pursues a foreclosure while the lost mitigation department negotiates a short sale, is alive and well in the Short Sale landscape. Our Short Sale paralegals work tirelessly to stay on alert to attempt to stop any foreclosures that are scheduled while the short sale negotiations drag on. (We're actually stopping 10-15 foreclosures per month. In fact, our Short Sale paralegals just stopped 6 foreclosures scheduled for April 24th alone!)
Dual Tracking causes anxiety and high-blood pressure for all parties involved and is all too common when dealing with this area of distressed real estate. In Virginia, foreclosures are very easy to process and complete (No court approval is necessary).
The following is a list of what the seller, realtor, and attorney need to do to monitor foreclosure activity:
- The Seller needs to open all mail from the lender and the possible foreclosure trustee (usually a law firm)
- The Seller needs to inform the Short Sale representative of any mail received that dictates a Trustee Sale date, particularly if the correspondence is sent via certified mail
- The Seller needs to answer all calls from the bank and refer the bank to the attorney or realtor negotiating the Short Sale
- All parties should continue to review all legal foreclosure advertisements in the local papers
- The Seller's Short Sale representative should continue to ask the Short Sale negotiator if any foreclosure activity is currently scheduled
In a state like Virginia, it makes no sense to spend thousands of dollars to start a foreclosure only to stop it within the last week in order to continue the Short Sale negotiation. Yet, we have come to learn that with Short Sales, nothing makes much sense. The good news is that with the right tools in place, a foreclosure can usually be stopped.
William D. Tucker, III
Tucker Griffin Barnes