BiggerPockets

How can I go inside and see a home that is going up for foreclosure before the actual auction? I hate biding on something that you haven t seen the inside of. I am thinking about knocking on the door and in a nice way offering the owner 50.00 cash to let me look around. What have they got to lose? What do you think, and do you have any suggestions? The home that I am looking at is scheduled to go up for auction next month, I got all of the info from the county sheriff's auction web site. This home is valued at about 214,000 and the bidding starts at around 135,000. The only thing I am worried about is major problems inside. I have heard of people sometimes trashing the homes before they move out, so I was thinking if talks with the current owner go well I could try to make some sort of deal with them that if the property was left in the same shape I saw it at then I could offer them some money say a couple of hundred bucks , assuming I win the auction. Any suggestions?
Thanks, Vic

You could also knock on the door asking if they need assistance with their situation...

I would try to buy if from them before the auction... If the numbers are what you are saying they are... I would guess that the home will be bid up at the sale.

Best of luck!

Hi, thought I'll bump this up since I have questions of my own.

Assuming I'm able to purchase a property at a Sheriff's Auction in a situation where the current owner/tenant is living in the property....how do I evict them after I've won the auction? What's stopping them from trashing the place before moving out?

I'm new at this game, so have plenty to learn....

TIA

thanks Jon. I'll first try knocking on their door *before* the auction to see if I can work out any deal directly with the people living in the property.

Jason, What incentive would the home owner have, in talking to me, one month before his house goes up for auction? Would he not hope that the house doesn't sell, so he can continue squatting? Secondly, even if I'm able to work something out with the owner, how do I get the house OFF the auction block so quickly?

Sorry, I'm quite new at this. I own a home, have rented it out, and now I'm looking to purchase a house to live in, and another home as a rental property. THIS one is going to be the rental property. Have zero experience with foreclosures/short sales/auctions, so any help is appreciated.

TIA

No. Until the auction, the owner still owns it. The auction is the point where someone elses, often the foreclosing lender, takes possession. . Even that doesn't mean you can get in. You may have to evict the previous owner.

BY dealing with the homeowner prior to the auction, you have the opportunity to short sale the property from the bank and offer the current owner, walking $ as well as the benefit of not having a "foreclosure" on their record. Of course we know that their credit will still be adversely affected from a short sale, but most people do not know that and a short sale is slightly better than a full blown foreclosure on your credit record.

New investors may see my reply as "negative" but, seasoned investors may see it as "realistic" and helpful.

I think Jon, Jason and Eric offered sound advice and I agree with what they said. I also think they were being overly polite while holding back something I suspect they know all too well...

Contacting and communicating with a homeowner in foreclosure who still lives in the house is what I consider to be one of, if not the most difficult task a real estate investor can ever face. This thread has had several people offer advice based on common sense and logic and thats all great...BUT...
What new and inexperienced investors never seem to realize is that common sense and logic are two things that homeowners don't listen to.

Why do I say that?

It's not a house to them as it is to us. It is their HOME and choices and decisions they make about their home tend to be based entirely off of... Emotion.
No matter what way you look at it, it is not your home. When the owners are still living in their home that late in the process, that is a clear sign to me that they are not going to attempt a sale or a short sale so they can "save" their credit or prevent a foreclosure from going on their record. Their credit is usually shot by that point anyway and unless you go at them with a way for them to keep their HOME, what incentive do they have to hand over their equity and their memories to someone who obviously will benefit from their misfortune? 99% of the time they will see you as a shark.

I am not saying that I don't think you should try to approach them. What I am saying is to approach them in a way that most others don't.
My experience has shown me that I benefit a lot more when I approach them with the intention on HELPING them (not their credit) in any way I can. In my book, a deal is defined as a situation where both parties benefit. I have lost out on many deals because I backed off when I realized that I was the only one who would benefit. Some investors might laugh at me for that and they have every right to do that when looking at the deal from a business standpoint.
As I have said many times in the past and continue to stand by it... Yes, real estate is a business about houses but, I think most investors get farther and end up well rounded when they remember that PEOPLE live in those houses and its the people we need to relate to... Not the houses or the situation the houses are in.

Approach the owners as someone you want to help. You may find that when you are able to help them... You end up helping yourself in ways you never thought possible.

Good luck

While reading this, I thought about a current situation I am in. I am considering bidding on a REO property that the former owners are still living in. It is a great deal and from what I know another offer has already been submitted. For some reason, I have that gut feeling that if I purchase it, they would trash it before moving out. Has anyone been in this situation before and have any advice for me? Should I gamble?