Closing a Pre-foreclosure Question

[Rachel Bennett]

Hey guys! 

Super Newbie Question: If I get a property under contract that is scheduled to be auctioned off at the next foreclosure auction, what steps do we need to take to stop the auction? (I'm in Williamson County, Texas)

Do we just pay what is owed? Do we call the bank? Do we talk to the CAD office? Is there some kind of form that needs to be filled out?

Thanks in advance for your help! 

[David Foreman]

I agree with Jorge, you will need to move fast. However I would also add have you ran a property search on the title in question, obviously if they stop paying there mortgage, they may have stop paying other bills too. Namely Taxes, or any other existing liens. Also biggest question are you sure the foreclosure is for the first position lien? These could cause a real ding moving forward. Have you tried reaching out to the Trustee for the Foreclosure? After all there the ones who will be selling the property on the courthouse steps. If in fact you do manage to pay whats due on the existing loan, another minor problem you could potentially run into is once title is changed, does the current debt have whats called a "due on sale" clause which gives lenders the right to call for the total amount of whats left to pay off due, if the title changes. Aside from that, to answer your second question. as to forms? You could simply get a signed letter from the current owner, that simply allows you to get general info on there behalf (the payoff amount or whats due on the existing loan.) Either way, as mentioned earlier, yes move fast. Good Luck!