Purchasing pre-foreclosure from a relative

[Michael VerBout]

I have a relative who is going through foreclosure.  They are content with letting it go.  Are there any options I have before the Sheriff's sale to purchase the property?  I know short sale is out of the question (or is it?) since we are related.

They currently owe 140k on the loan, with a 10k lien in addition.  It needs about 40,000 put into it and is worth 200-210k.  The auction won't be until September 2019 in which I will have at a minimum 20k to put towards conventional financing.

Any sort of insight that is given is greatly appreciated.

[Mark Enriquez]

Perhaps someone here will correct me, but couldn't you use the 20k to reinstate the loan, and after that your relative can transfer title to you? The lien would need to be taken care of, but you should be able to work that out. 

That, or you buy the property at a price which will satisfy the loan in default, and the additional lien, before sheriffs sale. 

I definitely would want to avoid the auction.