Can a bank sell a loan during short sale negotiations?

Absolutely... and there is nothing you can do, but don't be confused.. some lenders will sell their loans to another company that is still owned by them, for example, Chase sells to EMC.. EMC is a division of Chase.. But even in this scenario, most lenders will make you start over... and there is really nothing you can do about it.. :(I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The decision of the bank to sell the loan had nothing to do with the fact that you are negotiation a short sale. The holder and the servicer of a note always have the right to sell it to anyone and at any time. You may not have to start the entire process over, although that is a possibility. Many times what is transferred is the servicing rights meaning the same investor still owns the note. Either way, you will want to contact the new bank ASAP and find out what your next step should be. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950