Can someone sell a home that's under foreclosure ??
If someone's house is going on a foreclosure auction within the next 21 days, Can someone buy the house from them via subject to, or other creative financing? Thanks!
The house belongs to the property owner until the hammer falls.
Given your time frame, speed is needed.
The amount owed, plus fees accrued MUST successfully be paid off BEFORE the auction hammer falls.
Much success !!
Yes, they can sell it.
But they cannot convey free and clear title without paying off the mortgages and any other liens. So they would need to sell it for more than they owe.
In order to buy it subject to, you would have to bring the mortgage that is in default current, meaning paying off any late payments, penalties, interest, late fees, etc to bring the mortgage account current again. Often, these are extremely high after accumulating long enough for the foreclosure auction to be imminent.
Another challenge can be even figuring out what this amount is. The mortgage servicer will not release this information to anyone but the borrower, and will often require a written authorization to release information signed by the borrower before they'll talk to you about the loan or the current balance. Many borrowers who are this far down the road to foreclosure stopped being responsive long ago, and are often in denial.
Thank you Jeff and Bob for your answers. Much appreciated!
@Raymond Cardenas
If you buy it you will need to pay off the lender or bring the loan current.
The only time it gets challenging when buying a home is if the borrower is in bankruptcy