Buying Property Pre-Foreclosure Stage

[Dan Olin]

Being new at this, I have a question regarding the process of buying a house from a seller who is in the Pre-Foreclosure stage. Once I have a property under contract from a seller, and have the buyer. Buyer aside for the moment, at closing, does the Title Company issue 1 check to the mortgage company for outstanding loan amount, 1 check to the seller for any “over and above” amount in the sellers “agreed upon price” with me? 

I would greatly appreciate everyone’s insight into the process. Thank you!