Buying a property on verge of foreclosure

[Mark Bondurant]

I'm wanting to put an offer in on an on-frame modular in North Carolina. The owner has missed mortgage payments for about 3 mos. If I move fast, shorten due diligence and pay cash to close in say 3 weeks, can the bank come back and contest my rightful ownership? What if they issue a lis pendens or Notice of Default before the closing? Other risks? I'm pretty sure I'll lose the property if I wait out the foreclosure process. Thanks!

[Andy Mirza]

Originally posted by @Mark Bondurant:

Thanks for the reply Ron. What is a payoff demand? Is that an assurance that the funds I deliver will go toward paying off the mortgage balance? And if those funds are insufficient, then what?

 Is the property underwater i.e. is the amount owed greater than the property value? If not, then there's equity and you can go into contract and buy the property like any other. The lender is only entitled to the total amount that's owed. Use a closing attorney or title company and close as you would a normal transaction