Can I buy a House that is going to foreclosure 1 day before the auction?

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Can I buy a House that is going to foreclosure 1 day before the auction?

Cesar Perales
Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote

Hi I want to know if is posible to buy a house that is going to foreclosure tomorrow September 2.. directly from the owner... I intended to payoff the mortgage but the bank says is to late... The owner want to make the sale.. but I don't know if we can stop the auction doing this... PLEASE RESPOND ASAP...

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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y

I have given certified funds and accepted fund minutes before sale. You need to get off the computer if you're serious and have cash and contract right now and get a hold of the trustee. I suggest you call your attorney and file a notice of sale this afternoon, not the day of the sale. If the mortgage and all costs are paid and any equity goes to the owner the bank/lender and trustee must accept it. There are liabilities involved for any lender who proceeds in foreclosure when they can be paid off within a short period of time.

You don't have time to waste trying to get opinions on whether it can be done or not, it can be, but you have to the close of business, maybe longer if you notify the trustee now. Show the money! If you can't show the money, show up at auction or forget it. :)

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    Yes, with cooperation from the owner. To speed things up, get a sale contract and place the full amount in escrow and have the escrow agent notify the trustee and the lender, no contingencies in the contract, cash sale.

    You can also have the owner sign a note and payoff the mortgage plus costs and buy later on or take a deed in lieu, but you need to speak to an attorney.

    If the trustee fails to respond, you need to get an attorney in the loop, no time to learn how to put the brakes on and force a payoff! Good luck :) 

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  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    The soonest I stopped a foreclosure auction before was 4 days prior to the auction and that's in a judicial state (OH). Texas is non judicial (meaning the foreclosure does not go through the court system) and so the rules are different. The bank is given the right to sell the property. You might end up bidding at the auction instead.

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    I have given certified funds and accepted fund minutes before sale. You need to get off the computer if you're serious and have cash and contract right now and get a hold of the trustee. I suggest you call your attorney and file a notice of sale this afternoon, not the day of the sale. If the mortgage and all costs are paid and any equity goes to the owner the bank/lender and trustee must accept it. There are liabilities involved for any lender who proceeds in foreclosure when they can be paid off within a short period of time.

    You don't have time to waste trying to get opinions on whether it can be done or not, it can be, but you have to the close of business, maybe longer if you notify the trustee now. Show the money! If you can't show the money, show up at auction or forget it. :)

    2Reply
  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y

    Hi thanks for the quick response

    I ask the bank to payoff the mortgage last friday and they don't want to receive any payment. So my question is: If the owner signs a sale contract with me.. This  can stop the foreclosure sale tomorrow at the auction? here in texas?

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  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y
    Originally posted by @Cesar Perales:

    Hi thanks for the quick response

    I asked the bank to payoff the mortgage last friday and they don't want to receive any payment. So my question is: If the owner signs a sale contract with me.. This  can stop the foreclosure sale tomorrow at the auction? here in texas?

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  • Account Closed
    Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    12y

    So you were offing the bank the full payoff with all the late fees?

    Joe Gore

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  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y

    yes and they don't want to accept it.. they say that the process take at least 15 days... the owner and I went to the bank to payoff the mortgage.. and they don't want to stop the foreclosure sale... I was frustrated ..

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    If you have the cash go to the auction and try to buy it there.  The timelines vary from state to state as far as the cutoff for withdrawing the property from the auction.  Around here they do get pulled right at the beginning of the auction.  IDK what the timeline is in TX.  But if you have the money just get some cashier's checks and show up tomorrow.

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  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y

    Yes I will,,,,buy I have to bid against the others.. I do not like that. Thanks again for the quick respond guys..

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    If an agent from the bank is there you could try to make a deal directly with him or her.  Not sure if they would at that time, but you have nothing to lose.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    Google and read the state statutes regarding foreclosure.  You should find the statutes regarding rights to pay off the full debt.  Happy reading!

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    12y
    Originally posted by @Cesar Perales:

    Hi thanks for the quick response

    I ask the bank to payoff the mortgage last friday and they don't want to receive any payment. So my question is: If the owner signs a sale contract with me.. This  can stop the foreclosure sale tomorrow at the auction? here in texas?

    Did you contact your attorney and their trustee as @Bill Gulley suggested above?  Or did you just call the 800 number on the payoff statement and talk to a representative?

    As Bill indicated, they can't refuse to accept a payoff prior to auction -- you just need to the right method of communication, and attorney-to-attorney is probably the fastest way to get things done.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Cesar Perales 

      depends on the state like CA within 5 days of the sale the bank does not have to agree to bring it current but will take a full payoff including all costs.

    I have many times showed up at the sale with the owner of the property and the owner has the right to payoff the property with the opening bid and no others can bid.. Now that is Oregon and Washington... It creates a stir with the other bidders but you have to stand your ground usually the crier will need to call headquarters and headquarters calls the bank or servicer.. they will then postpone the sale until they hear back..

    Not sure how it works in Texas but I think any owner has the right to a full payoff right up to the minute of the sale.. Now reinstating that's another matter but full payoff... you should be able today to present a cashiers check to the trustee service or attorney handling the sale and that should stop the sale  at least it would in our market.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Cesar Perales 

      Also when I have showed up with the owner I have already recorded the deed conveying title to me.. done all title work etc.. Its very stressful but you get the good deals from those that are in denial and wait to the last day to get it done. 

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  • Eric Espinosa
    Contractor · Richmond, TX · Member since 2014 · 26 posts · 5 votes
    12y

    this was me a year ago...on the foreclosure side of things...you would've needed to speak to the lawyers on it. they'll allow up to auction time - maybe an hour before so they can run the papers through to the right people to stop the auction. the bank has no hearsay on it, they've handed to account to "collections" so to speak. you must deal with the lawyers. no choice in that. the only other way to stop it, is to have the homeowners file bankruptcy. not a good thing to do that unless they want to take the hit, but it does slow the process. it buys them about 2 months or so. if they don't act accordingly, a new auction time gets handed out for the property. had i known better i could've stopped my own foreclosure. that's texas rule. again, i speak from experience on this one. 

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  • Scott Nipp
    Investor · Fort Worth, TX · Member since 2014 · 107 posts · 15 votes
    12y

    No first hand experience here, but in a seminar we took they were very specific that in Texas the right of redemtion (I think that's the proper terminology) is up to the minute of the sale.  Now, as others here have mentioned, it may be challenging to get the proper party at the lender involved to close the deal, but I think you should be able to make this happen.

    Unfortunately, having posted this on a bank holiday means that you would have to deal with this probably at the courthouse steps this morning.  No clue as to how that would work, but an attorney would probably be your best chance to avoid having to bid on it at the auction.

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    If the courthouse is closed I doubt there is a sale, he probably made a mistake as to the sale date. Hope he got to his attorney. :)

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  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    12y

    @Bill Gulley 

    How did it go ?

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    Then I suppose they don't have any legal holidays on that date where the courthouse is closed. While it might be hard I'd bet mistakes have been made by someone :)

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    @Bill Gulley Results?

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  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y

    Hi guys... Bad news.. The trustee did not stop the sale.. They said that I need at least 15 days... the price of the property : short sale 55,000 in the auction 89,000.. that sucks...I did not buy it..... Thanks for everything guys you rock.

    1Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    Been in exactly that situation, @Cesar Perales   Contract for short sale accepted by owner (which truly means absolutely nothing) but not the bank.  Bank took it to auction and it sold for less than my offer.  At the time I wasn't in a position to buy at the auction.  There were a couple of small liens on the property that would have had to have been paid off out of the short sale proceeds, so the bank netted about the same as they would have from my offer.  I had a big hassle with the former owners over earnest money.  My agent had to threaten the listing agent with RE board action to get the EM released.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Cesar Perales 

      Well there was more to the story.. you wanted to buy it for much less than what the payoff was... so the bank does not have to accept that and can take it to auction which they did

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    @Cesar Perales 

    Huh, short sale?  I thought you said you were trying to pay off the balance in full.

    Totally different situation.

    1Reply
  • Cesar Perales
    OP
    Real Estate Investor · Mcallen, TX · Member since 2014 · 12 posts · 1 vote
    12y

    sorry guys... the total debt 55,000  .. I tried to payoff the mortgage not a short sale..... to bad for me.. @wayne brooks

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