Purchasing property in presale foreclosure status

[Carolyn Miller]

My husband and I have been looking to purchase a property in Co. We recently stumbled upon a property that is in pre-sale foreclosure status. The papers were filed Nov 17 and it is scheduled to be sold Mar 17. The owner of the property doesn't want to part with it (we had a real estate agent who knows the owner inquire about selling it) so it is not listed or "for sale" at this time.

We would need to secure financing on this property so an appraisal and inspection would be necessary before we could bid at the auction.

What are strategies to get a property purchased before the auction if it is not currently listed? This is the 2nd time this property has been in pre-sale status in 18 months. The owner probably has an interest only note perhaps a balloon - only sixteen cents has been paid on principal in 2 years. The county has the property valued at about $3000 less than is currently owed to the bank.

We really would like to become the owners on this property. We were considering inquiring if the owner would consider a full note value offer on the property contingent on financing/ and inspecting the buildings (we can't even see the house through the trees-much of the value of this property is in the land).

We are not so concerned with a deal as having a crack at owning this property. We just need to figure a way to view it so we could make an offer to an owner who at this point in time is not accepting the fact that they may lose it...can the lender perhaps help us in any way? Would it be worth our while to contact the lender? Of course we're hoping the owner will come to terms with reality and short sale the property but in case they don't we want a strategy.

The county wants funds in place if a bid is made at auction so financing would have to be in place prior to that date -so somehow we have to gain access to have an appraisal, and visual inspection made.

Thanks for any suggestions tips...etc!

[Account Closed]

Carolyn, quite honestly, if the owner doesn't want to sell, there is no way to make him sell. I can see why he's hanging on. He's been living there for free and assumes he can milk it some more (and he might be able to)

All you can do is give him a written offer. If he refuses to deal, you are going to have to wait for the auction.

Do you own any cheap rentals? If you want this place badly enough, offer to pay the full mortgage and give him free rent for a year IN A DIFFERENT HOUSE.

You might get the place cheaper at auction. Or if it is desireable, you might not. How badly do you want it?

Whatever you do, don't offer to allow him to stay in that house. He'll be easier to get rid of if he is a regular tenant in a house he has never had any ownership interest in.