Can a delinquent owner buy their own home at a courthouse auction?

[Douglas Larson]

In other words, will the trustee allow or can they forbid the delinquent owner from paying cash for their own property at the courthouse steps?

[Duncan Taylor]

Originally posted by Douglas Larson:

@Duncan Taylor

@John Rooster

@Wayne Brooks
@John Rooster

Thanks for the comments so far.

Perhaps I should explain further . . .

I'm a 15-yr investor - currently in Utah but I have done many deals in CA and HI. I've never liked courthouse or trustee auctions but I have an acquaintance that wants to buy her own house at auction because she owes 350K to the bank and believes it will sell at auction for about 220K (She purchased the home at market peak in 2007). She has 175K cash (from retirement money and savings from not making payments for 3 years) and wants an investor (me) to lend 45K or so as a first position mortgage. No other liens appear on title. There is no HOA and the taxes have been paid. I'm wondering if the bank can keep her from doing this as they do with short sales.

I am not an attorney, nor do I play one on TV. However, I have provided a great standard of living to them across the planet. :)

Having said that, even if she were the successful bidder at 220K, you can bet every single one of the 130K she 'saves' they will file for a deficiency judgement FAR in excess of the 130K. All those 'misplaced' fees and penalties have to be accounted for somehow you know. Even if they can't get or perfect the judgement they will send a 1099 as extra income to her and she will have to pay income taxes on it.