FSBO and possible forclosure?

Question

I came across a FSBO on marketplace. After doing a little research found that property appears to be up for foreclosure auction in March (xome) but can’t find much more information on the property which I find strange. It doesn’t even come up at the appraisal district website. Owner did not mention anything when we saw the property. This would be my first time to deal with a foreclosure.  Asking for guidance on how to navigate this deal.

Ron S. · Answer

Yes. That's exactly what you do. Ask the seller if his property is in foreclosure and if he/she says no, let him know there are sites stating it is and then if still not satisfied, you can confirm if its in foreclosure or not by getting a prelim for a nominal fee.

if it is and its just the notice of default, there is time but if its the notice of sale, there is little time but still, if there is a deal to be had, the seller can request a postponement showing that they are under contract and anticipate a close shortly. A lender would be hard-pressed justifying not postponing if the seller submitted the purchase contract and something like a preapproval or proof of funds along with it. They could (would) be scrutinized by state and federal regulatory agencies if not their investors and/or shareholders.

Shelly Rike Mitchell · Answer

I have not even offered on the house yet.  I just saw the house yesterday and when I ran numbers and was trying to look up the tax information, I could not find any information.  The only thing I found on this house was that on realtor.com its listed as going up for auction. The house does not come up on Propstream, it does not come up at appraisal district, etc. Should I just ask the seller, is this property being forclosed on?

Bob S. · Answer

Are you cash? Do you know the payoff?  Do you know the reno cost the ARV ? If not move on. Do a few " normal" deals then move on to these.

Abel Curiel · Answer

Hello Shelly!What stage are you in currently, i.e. Is the deal under contract already? Did you run title?Does the owner know their payoff amount? Have they answered foreclosure notices from the bank and possibly notified them about their intention to sell?

There are a few details to uncover here to determine the next best steps.