Making an Offer Before a House Goes to Auction

[Stephanie Jacobson]

Hello all!

I'm in upstate New York, looking to purchase a property to rehab. We're working with an investor. I've spotted a property on the county tax auction website that I LOVE; it looks like it needs all the right things and sales in the area are decent. The only info the auction site has is that the tax assessment is $150,000 and taxes due are $6,000. It is currently owner-occupied.

Our investor is going to finance a purchase. Can we make an offer to the family before it goes to auction in June? If so, how do we go about it?

I'm not sure how properties usually do at auction versus their actual value. I'm also not interested in screwing this family over after they've had such hard times. Is there anything we can do here that will benefit us, the family and the county?

Thanks guys!

[Jassem A.]

if you talk to the family and find out the name of their mortgage lender then you may be able to call them directly and negotiate a short sale. If it's too late for that then you could attend the auction and if no one offers the minimum bid then the home will eventually be winterized and listed as an REO. Sometimes the minimum bid will be much lower then what it will go for as an REO but sometimes not.