Wholesaling A Pre-Foreclosed Home

[Barbara Gardner]

Hi Everyone,

So my question to the community is, if a home is in pre-foreclosure status and is up for auction, yet I speak with the homeowner before it gets auctioned off, can I get this house under contract and wholesale it to an endbuyer?

[Jay Hinrichs]

Originally posted by @Dan Barli:

Hi @Barbara Gardner, you should double check with a local real estate attorney to confirm it, but you can definitely get a house under contract. Depending on your state laws regarding foreclosure, you may have to adjourn the sale date or hire an attorney to file a motion to defend the action. Are you looking to actually close on the house? 

 for those that do not close on houses IE wholesaler contract flippers I cant think of something worse for the seller.. the seller gets in many cases lied to thinking they have a sale and when the wholesaler walks they lose their house.

seen it happen over and over  when i buy court houses steps properties show up and have to give the bad news to the owner, who then tells me there sad story of letting some unlicensed wholesaler tie it up and then just walk and lose the house..  

this is VERY VERY risky for sellers..  all those foreclosure rescue schemes have been pretty much put out of business by states AG's