Quote from @Ben Boru:
Andrew,
So if they are up for a foreclosure auction in a few weeks I can still help them salvage their credit by talking to the homeowner directly right? Amy advice or insight on this process?
You can't salvage their credit. It already shows as a foreclosure. Confusing, I know. But once the Notice of Trustee sale has been recorded, it lists as a foreclosure on their credit report.
However, you can save their equity (cash to them).
Depending on the state you want to do this in, laws vary. I'm hesitant to get too detailed since what may be legal in one state may be illegal in a state next to it and someone reading this will jump to the wrong conclusion and do the wrong thing and get into deep trouble.
But, you can buy a property before the auction directly from the owner. Use an escrow company, get a title report, know how much the payoff amount is and complete the transaction before the saledate. Also make plans for the owner to vacate. No exception. Because owners who stay will sue you after the fact claiming you made representations in the hopes of getting "their" property back. A lawsuit like that will cost a minimum of $25,000 in legal fees and a year or two of litigation with no guarantee of the outcome.
Remember this, in real estate, No Good Deed Goes Unpunished. The court expects you to treat it as a business, not as a ministry. They will rule accordingly.
