How Early Is “Early Enough” in Foreclosure?

Question

I spoke with a homeowner recently who waited until they were three weeks away from the auction date before asking for help. By then, their options were extremely limited.

It made me wonder:

• At what stage do you typically step in when working on a foreclosure property?
• Do you focus on pre-foreclosure deals where timelines are longer, or do you jump in even when the clock is ticking?
• Have you ever successfully closed on a property with less than 30 days before the sale?

At what stage do you typically step in when working on a foreclosure property?

Do you focus on pre-foreclosure deals where timelines are longer, or do you jump in even when the clock is ticking?

Have you ever successfully closed on a property with less than 30 days before the sale?

David Randolph · Answer

David, I have closed on basically ALL my short sales when they had less than 30 days. MOST states have foreclosure laws that give only 21 days notice (MO,TX, GA is 30) So most Non-Judicial states are less than 30 days.

However, please be aware that today, due to the political environment , us investors have MANY ways to stop the Foreclosure date even a few days before.

For example , we can stop an FHA foreclosure just 4 days before and a FNMA (Fannie Mae) foreclosure just 2 days before and a VA just 1 day before.

Ricardo R. · Answer

Hey David,

We’ve dealt with a few foreclosure situations through our property management/investment side, and here’s what we’ve seen work best:

1. Pre-Foreclosure = Best Chance

• The earlier the better.
• 60–90 days out gives enough time for negotiation, title work, funding, and due diligence without chaos.

The earlier the better.

60–90 days out gives enough time for negotiation, title work, funding, and due diligence without chaos.

2. Under 30 Days = Possible, but Tough

• We’ve closed deals with less than three weeks left, but everything had to line up:


Seller already had docs ready


No major title issues


Cash or private money funding ready to go
• Seller already had docs ready
• No major title issues
• Cash or private money funding ready to go

We’ve closed deals with less than three weeks left, but everything had to line up:

• Seller already had docs ready
• No major title issues
• Cash or private money funding ready to go

Seller already had docs ready

No major title issues

Cash or private money funding ready to go

Otherwise, the clock kills deals fast—especially if banks aren’t quick to respond.

3. Our Rule of Thumb

• The moment the Notice of Default drops, we want to talk to the owner.
• The longer they wait, the fewer options they (and we) have—both in terms of price and paperwork time.

The moment the Notice of Default drops, we want to talk to the owner.

The longer they wait, the fewer options they (and we) have—both in terms of price and paperwork time.

My Opinion:
Pre-foreclosure leads give you the most control. Under 30 days can work, but only if everything is clean and you move fast with cash funding. I'll send you a DM.