buying a property set to be sold at auction

[Victor Glushak]

hi i have come across quite a few properties that are in the foreclosure process and are set to be sold at auction (notice of trustee sale issued) ..my question is it possible for me to still purchase the property in this stage before auction or do i only have to option to purchase it at auction or when it becomes an REO

thanks in advance for your input!

[Account Closed]

Victor,

State law varies. In CA, when a NTS has been served, the auction/trustee sale date is 21 days out. The owner has up to 5 days before the sale date to bring the loan current. Within the last 5 days, the loan balance has to be paid in-full although there's a provision in the loan document that states it's at the bank discretion if they would accept the arear outstanding balance and stop the sale. 

In most cases, you need to have the cash to pay off the entire loan balance within the 21 days as time is of the essence under this circumstance. If you try to do funny things, get the seller's hope up and their property gets foreclosed, you may end up getting sued by the seller especially if they still have equity in their property.

This can be a lucrative niche if you know how to work it and have the resources to back you up if you get deal flow. Understand your state law is a must for this niche. Otherwise, you might end up in hot water. 

Best of luck.