Buy at Auction or Before?!

[Vanessa Ryder]

I am tracking a property that is scheduled for Auction this week (provided it isn't postponed!) The outstanding default amount is pretty close to the value. Wondering if there is a way to get in ahead of the trustee auction (vs compete with multiple bidders on the day..) if I can get the seller on board and get the bank to agree.. OR better to wait for auction? Will the bank ever take less at auction than the amount owed? Any input from those of you who do this / know about this would be much appreciated!! PS I am in California!

[Ron S.]

The short answer is no. There is a reason its a public auction. Its designed by definition to thwart "getting in ahead of the trustee auction".

That said, if you started with the seller months ago, sure. Pay the loan off in full or try to do a short sale with the lender's cooperation but with the auction inside of 30 days not a chance.

Will the bank ever take less at auction that the amount owed? Sure. They do all the time.

Buying the note only buys you the note, not the property. Buying the note the week of sale is not likely. Buying the note is a valid strategy but not in the time frame you are talking about. Is it possible? Sure. Is it probable? No.