Foreclosure and Lis Pendens Questions

[Steeve Gauthier]

Hi all,

I found a duplex that in a pretty decent area but it has some stipulations surrounding the property. The duplex is currently a foreclosure and has a lis pendens. The sale is also subject to court approval. With that said, I did have some questions on this. 

1. Since this is a foreclosure home, does this qualify for the HUD $100 down program? Or does this specifically have to be offered on the HUD website?

2. There is a Lis Pendens on this property. I am assuming that there is an active lawsuit/lien that will need approval of the court to purchase. How do I go about getting more information on this?

3. Since this a foreclosure home and the sale is subject to court approval, is the asking price the required price we are to pay in this transaction?

I appreciate any insight you can provide on this. 

[Bruce Lynn]

@Steeve Gauthier   In some ways it seems like you have mixed up a lot of information here.

Has it gone thru foreclosure and now REO or is it a pre-foreclosure?

Is it owner occupied? or is owner still able to sell?   If it is you could go make an offer to the owner and see if you can get it closed.  Could be equity in it and you get it for a good price and get them some cash as well.

You could also potentially buy on the courthouse steps for cash when they have the auction...or someone else could buy it for cash.  That's likely these days as these old loans that foreclose are often much lower than current values.

If the lender is the higher bidder at the auction, then it will go back to them and then they decide what to do with it.   Chances are they resale themselves or auction it off on someplace like auction.com

If it was an FHA loan and the value isn't there, then they could return it to HUD and let HUD deal with it....then it will get listed on HUDHomeStore.com. Typically these will NOT go to investors, but rather to owner/occupants, unless it is in really bad shape, so bad that most owner/occupants could not handle repairs or reno or it would not qualify for normal lending. Then it might go to investors, and at that point I don't think you will get $100 down...as that is for owner occupants only who qualify for FHA financing.