Oregon foreclosure question
Hi BP, I have a foreclosure in Oregon that I need some advice on. Property is in Oregon, worth about 280k, 1st mortgage is around 190K, second is around 100K, (repairs are done). Story from homeowners (who are friends of mine) is that it was a rental, tenants did some damage to house and they could not afford to repair & pay mortgage at same time after tenant was booted. Bank said it was going to would work with them, then said bank changed their mind and now won't work with them. Goes to auction/ sheriff sale in 2-3 weeks. They told me about it because they new I was into REI, and did not want some stranger to get it (once again these are friends of mine). They received a "BARGAIN AND SALE DEED" from an investor stating the owner would convey everything (Grantors rights, title and interest including O.R.S. Chapter 18...)to the investor in exchange for a small fee. This form also has a section called "Oregon State Disclosure, for all Real Property" listing a bunch of sections that should be reviewed before signing. They think it has something to do with the owners being able to come back and buy the property for up to 6 months. In a nutshell they are furiuos at the bank and want someone they know to get equity they lost, not bank.
Between my HELOC, cash laying around, and 50k loan from solo401K, I can cover it. My questions are how do I approach the bank to make an offer before the auction? Also, How much should that offer be? Should it be the amount of the first? How much time do I have to get an offer in before the auction? Thanks.