Can I buy direct from owner prior to Florida Foreclosure Auction?

[Matthew Rollo]

Good afternoon BP,

I want to start buying from the foreclosure auctions in my county here in Florida. Lots of activity on those auctions though and typically get bid up higher then my MAO.

I know how to find the owner and contact them directly but what is the process to buying directly from them prior to the auction date? Is it pretty straight forward or is there a ton of hoops to jump through first?

Any input helps!

[Alexis Adams]

You would want to know what liens are on the property and what the payoff figures are for each lien. This includes mortgages, HOA’s, city violations and code enforcement liens, etc.

Have a title company take a look at the title for you (I would not recommend going off of the seller’s word because sellers oftentimes have a lien that they “forgot about” or did not know was a lien on their property). From there, obtain payoffs on all liens and make sure your offer will cover closing costs and all lien holders will be paid in full.

If your offer less closing costs will not net a full payoff to the lender(s) and lien holder(s) then you are falling into short sale territory which is going to require you to obtain approval from the lien holders to release their lien and settle on the debt without obtaining a full payoff.

Both can be completed, but it depends on the specific situation and the status of the upcoming auction. Short sales will take you more time overall to obtain the necessary approvals to close.

Hope this helps.