I'm a 22 year old contractor and I've been researching different ways to acquire properties in my state of Massachusetts due to the competitiveness at all the foreclosure auctions I attend, there are a lot of "bigger fish" that have more funds to spend then I can/the bank bids them up. I was curious if anyone knows if you're able to purchase the property before the auction as in going straight to the owner. When researching I've gotten mixed answers such as you can or you can't once there is a set date for the auction. If anyone has any info on this i'd greatly appreciate it.
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
3y
@John J Murray we purchased hundred of properties at auction here in the Pittsburgh market. I assume its the same in most states. We have purchased quite a few before the auction. You can stop the sale if you know how to do it properly. You need to get the seller on board and have an attorney help you through the first one. The biggest challenges are 1. Is there enough meat on the bone. The sellers may owe more than its worth. 2. Finding the seller and explaining the process to them and how you can stop the sale and help them.
Seek out a good local experienced real estate attorney who knows the sheriffs sale process.
I'm a 22 year old contractor and I've been researching different ways to acquire properties in my state of Massachusetts due to the competitiveness at all the foreclosure auctions I attend, there are a lot of "bigger fish" that have more funds to spend then I can/the bank bids them up. I was curious if anyone knows if you're able to purchase the property before the auction as in going straight to the owner. When researching I've gotten mixed answers such as you can or you can't once there is a set date for the auction. If anyone has any info on this i'd greatly appreciate it.
Thank you
The owner is still the owner until after it's sold at auction and then depending on the circumstances, that may not be the end of things. So, yes, you can buy the property until it's owned by somebody else, like the bank for instance. Have the owner contct the bank for a "reinstatement amount'. you will have to cover that in order to buy the property. Have a title report run so you find out if there are other liens or unpaid taxes.
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
3y
@John J Murray we purchased hundred of properties at auction here in the Pittsburgh market. I assume its the same in most states. We have purchased quite a few before the auction. You can stop the sale if you know how to do it properly. You need to get the seller on board and have an attorney help you through the first one. The biggest challenges are 1. Is there enough meat on the bone. The sellers may owe more than its worth. 2. Finding the seller and explaining the process to them and how you can stop the sale and help them.
Seek out a good local experienced real estate attorney who knows the sheriffs sale process.
Yes, it is possible to purchase a home before it goes to auction when it is in the foreclosure process. This is known as a "pre-foreclosure" sale or "short sale" where the homeowner is in default on their mortgage but the lender is willing to accept an offer for less than what is owed on the mortgage. A real estate agent can help you find pre-foreclosure properties and guide you through the purchase process.
@John J Murray we purchased hundred of properties at auction here in the Pittsburgh market. I assume its the same in most states. We have purchased quite a few before the auction. You can stop the sale if you know how to do it properly. You need to get the seller on board and have an attorney help you through the first one. The biggest challenges are 1. Is there enough meat on the bone. The sellers may owe more than its worth. 2. Finding the seller and explaining the process to them and how you can stop the sale and help them.
Seek out a good local experienced real estate attorney who knows the sheriffs sale process.
@Alex Deacon may I reach out to you? We're starting to grow out portfolio in Beaver, Butler, and Mercer Counties. Would love to get your insight. Thanks!