Foreclosure Prevention
For homeowners, the one word that invokes the most concern is foreclosure. The trustee mails a notice of default and a “notice of home loss danger” to the owner (and any other persons holding an interest in the property) of the amount of the debt and the sale date, time and place, and publishes notice of the sale in a newspaper.
The most common reason buyers need to ask for an extension of the closing date is that the lender has not completed loan processing and delivered loan documents to title several days prior to closing to allow time for both the seller and the buyer to sign.
By selling the house, the homeowner should be able to get a reasonable price for it. If the homeowner waits and lets the lender sell it, the sale price is almost certainly going to be much lower, because the lender just wants …