Looking for a fast education on Trustee Foreclosures

[Peter Hanna]

Hi BP members. I've stumbled across a property in a status that I am unfamiliar with. My neighbor has a house about to go to auction in a "Trustee Foreclosure". I found out about this Saturday, April 15, 2017 around 5:00p.m., so I have been scrambling to learn/prepare. What I've seen on BP is how to bid at one of these auctions. But, as a neighbor, I might be in a position to step in before hand and help the homeowner. I don't know much about these kinds of deals, and if I take this it will be my very first deal. What I have learned has been that it's possible to stop a foreclosure by: 1 - getting a contract where the HO retains responsibility for the loan, but signs a contract with (Me, hopefully) where I have rights to the deed, or the deed itself; 2 - I know I then catch the note up to current and maintain until rehab/sell; 3 - (in this case I will) Offer Cash for Keys to help the owner vacate the property and move on with life.

The details (what I know so far):

• Home has two mortgages, one for 80%, one for 20%, on original value of $100k
• I'm getting an agent to give me current comps tomorrow, but what I've seen in my neighborhood is homes going for $120k to $136k.
• Auction is May 2, and they have to do something by the 29th (maybe the 28th)
• Taxes are current
• Note unpaid for almost a year
• Owner's current life circumstances make her a reluctant but motivated seller (she can't afford to go anywhere, but they are going to have to move no matter what)
• (I think) the lender is called "Aukland" which, if true, has some bad press in Google, and looks like a brokerage out of New Zealand. 

What I don't know:

• What is the difference between this kind of foreclosure and a "regular" bank or a Sheriff's/Tax foreclosure?
• Is it possible to negotiate price in this situation, or am I stuck? Can I offer less than the note and have a chance?
• Will the owner know of all the leans against their property, or do I need to do a title check anyway?
• Is there time for me to do this?
• What kind of contract do I put this under? Is there boilerplate, or should I get a lawyer to draft one up? (I'm not sure how long this could take, and it seems there is a need to hurry here).
• Will I need separate contracts with both owner and lender?
• Will eviction still be required, as due diligence, or will just leaving be enough?
• Is one of the calculators going to work for assessing the deal? Or are there more "gotchas" than are calculated for in the tools here? If no calculator, how do I construct a MAO number for this sort of deal?
• What else do I need to know that I don't know about?
• Are there blogs that I can ingest to catch up quickly about this kind of thing?

Thanks for helping, especially today.

Peter Hanna