Preforeclosure Structured Buyout Strategy

[Danielle Levins]

Forgive me if this has been asked already, I couldn’t find a similar thread in this forum. Im considering a strategy that includes approaching homeowners who are listed on the tax deed and mortgage foreclosure auction site and buying them out PRIOR to the auction.

I was told by a clerk that if we purchase the property from the auction, the mortgage and other liens EXCEPT government liens fall to the wayside. Does this remain true if I buy the owner out and clear the debt (paying the delinquent taxes, or past due mtg payments) prior to auction? The clerk told me that would be legal advice so he could not answer me. But stressed that the AUCTION would be cancelled for sure if I did it that way.

Would I need to considering quiet title lawsuit fees in this strategy as well?

HELPPPPPP.... I’ve been picking my brain and digging through threads to figure how so many investors have been able to approach homeowners in preforeclosure and give them Cash For Keys, even though the property was encumbered by a mortgage lien very close to the market value of the property.

I appreciate everyone’s time and I’m truly ok with constructive criticism.