We went to an event the other night REIA and he was talking about houses going to auction. He said that he goes to the house before it is auctioned and makes them a deal which keeps their house from being auctioned and he gets a great deal. I would assume that many of them don't own the house, so what do you do then? My question is how far out from the auction must this be done. Most auctions are not posted more than a couple of weeks or so. If the house is scheduled to be auctioned in less than 2 weeks can you still go and do this? You just make them an offer, sign a contract, if you have to have financing obviously this can not be done that fast. Or will just having a contract stop the auction? Sorry I have lots of questions about how to do this. There are a lot in this area and if it was that easy I am shocked, with all the investors here, that all of them are still on an auction list. Obviously if I can buy it cheaper before it goes to auction that is what I want to do. Can you guys explain how this works? Thank you!
You can cure the delinquency pretty much right up to the auction and that will usually cancel it. The problem is, it usually takes at least a few days to run title and actually buy a property. So if you're going to do something too close to the auction, you'd have to cure the delinquency and get the property under contract at the same time, which basically amounts to a huge earnest money payment and is not something I would be interested in very often. But with 2 weeks time, you should be able to get the property closed in time. You just need to tell the title company it's urgent.
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