Is there a strategy for purchasing foreclosures or do you have to wait for them to become an REO and be listed?
You can purchase at the foreclosure sale. That would be the courthouse steps in many states (e.g. NC) or the designated place of sale (e.g. the property being sold at auction in some states). The method of sale is contained in your state statutes/laws and/or the legal documents pertaining to the suit associated with the foreclosure proceedings.
Thanks Chris. My question did't come out as I intended in my post. I may be thinking more about strategy for short sales. When you see a listing in Preforclosure, would you contact the homeowner before the property goes to auction for a possible short sale?
Hey Paul. I am looking for some guidance on this topic as well. I would think that there is a strategy to work something out with the seller prior to the auction. Maybe someone with experience in this area could help.
It's possible to purchase the property prior to the auction. If the auction date is not very soon it can give you some time to work something out. Preforeclosures are not always under water either so there can be a good opportunity. Do your research on the county website to figure out when the auction is scheduled for to see how much time you possibly have. Then contact the seller in whatever means you determine to be the best for the situation. If the seller is under water on the home then you'll need to find out if they have talked to their bank at all about a short sale. If they aren't under water and are interested in selling then have them get all their current costs to pay the lender (This is more than just the mortgage at this point). Once they have those costs you can make an offer and purchase normally as long as you close before the auction date. Hope this gives a quick idea.
So.... when you see all the foreclosure listings and it states auction date (but also dates may be changed) and it is still listed as a pre foreclosure.... does this mean that you would still contact owner even if it's past the auction date?
Also what if you look it up and it is past auction date and bank is listed as owner.... do you contact the bank listed??
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