Approved Short Sale vs HOA Foreclosure Sold at Auction

[Leslie Fernandez]

Wanted to get any feedback of anyone with possible experience on anything similar to this. What if an APPROVED short sale was underway and notification failed to cancel the HOA foreclosure auction? An auction took place anyway and property was sold and paid for. Now there is an approved short sale scheduled to close in 2 weeks and somewhere someone failed. According to the parties involved, the notifications from the mortgage company went out to all parties. So did the HOA not cancel the auction or did the court not cancel the auction?

Based on this, there will be a a clouded title pending an approved short sale. Was it the court or HOA fault? How does this get proved? There was no mortgage foreclosure filed and the HOA beat the mortgage to the punch. But technically the auction should have never taken place. Is it even possible for the court to refund the auction because the CT has not been provided yet and still in redemption period? Or does the 3rd party buyer now demand repayment at the short sale after proving the CT is in their hands. This is happening more than it should in Miami Dade due to the overflow of Foreclosures in the county. It's a fiasco and messing up all sides of the parties involved - the investors, the homeowners trying to get out, the new buyers getting a short sale deal.