Buying Foreclosure before Auction?

Question

Hello fellow investors! We have our eye on a couple of properties that are set to come up to a foreclosure auction on the courthouse steps. We would ideally love to purchase the home before it goes to the auction (make a deal with the homeowner- cash and quick close) and settle up with the mortgage company so that it gets pulled before that day.

Has anyone had success with this? Is this even a thing?

Love to hear your thoughts!

Has anyone had success with this? Is this even a thing?

Love to hear your thoughts!

Ben Robbins · Answer

Thanks Steve! The auction is about 3 weeks away.

Because it’s a mortgage foreclosure, redemption rights dont exist. But it might be worth a look to the lender to see about the minimum due, however they bought the home pretty cheap 10 years ago, and it’s the only lien on the property.

Steve Morris · Answer

"We would ideally love to purchase the home before it goes to the auction (make a deal with the homeowner- cash and quick close)"

Well, if you're close to auction, you really need to deal with the lender.  At the very least, you need to find out how much is owed with debt + interest + penalties + atty fees to see if even worth it.

You could prob buy the redemption rights and hope that the price is lower at auction and then buy it back, but banks usually make sure it auctions at what is due.