Purchasing a foreclosure house
Hello everyone, long time lurker first time poster. I’d like to introduce myself as well as ask a question. I have a potential off market deal, which would be my first RE investment. The house is in the foreclosure process. The owner is happy to sell to me, he says, if it’s not too late. His plan was to just let the bank take it. I’m not sure why, but he has been in default for a little over a year. He authorized me to speak with the mortgage company and they told me as long as we come to an agreement, he is free to sell to me, close, and payoff the loan as the foreclosure hasn’t yet been finalized. The payoff amount is about 70% of the conservatively estimated ARV.
My plan is to offer the amount to cover the payoff and if he agrees, we’ll sign a purchase agreement and call the title company to setup closing.
Are there any glaring omissions in this plan? I’m assuming a title search will be done prior to closing to make sure no other liens exist.
Thanks in advance for your feedback.
Jason