Buying a Property Before Foreclosure

[David Simoneaux]

I caught wind of a home in my uncles neighborhood that is to be foreclosed upon in “the next 30 days” according to the homeowner. 

The potential sale price is something I could pay cash for. 

The owner and I have discussed covering the payoff amount and giving her enough money to get back on her feet (which is fair market value based upon how distressed the home is). 

Questions and Guidance: 

1-What is the process for closing on something and saving it from Foreclosure?

2-How long does that take as I will be pressed for time with 30 days or less to close(accessing the cash is not the issue, it is the transfer of the title)?

Any other helpful info would be appreciated! Thanks!

[Steven Goldman]

Buying a pre-foreclosure property is about coordinating the sale with the owner and the bank. Any good loss mitigator would advise you that if you are willing to payoff the owners mortgage in full, pay the tax and other liabilities that the bank upon being informed of a sale which covers their mortgage will delay foreclosure to allow you to close. 

here is my advice about the order of tasks:

1. get an immediate title search to find out if their are other liens or judgment's or tax liens.

2.If their are not: Draw up agreement of sale. When signed:

3. Advise the lender that you are in need of the payoff and are buying the property and request a postponement of the foreclosure.

4. Settle on the property. Make sure that the owner has moved out prior to settlement. Do not let the owner remain in possession after closing or you will have a big issue on your hands. Good luck.