How to obtain a foreclosure that has not been posted.

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There is foreclosure in my area that has been seized and has been in the foreclosure process for over 2 years. It has not been listed for sale and still under the direction of a law firm.

Has anyone been able to purchase a property during this phase of the foreclosure process? If so, how?

Thanks

the owner still owns it, if the foreclosure isn't finished and the property hasn't gone to auction.  If there's equity, it's a straight up sale.  If not, then it's a short sale.  After the auction, if the bank gets it back, you'll have to wait for it to be listed.

Ok, so according to the Public record the property went to Judgment for Foreclosure but a Disposition has not been declared (I spoke to the Judge assigned to the case and he verified this information). However the owner states she hasn't had anything do with the property in over 5 years. So at this point, so I contact attoneys or the bank or both?

I contacted the attorney and the property still legally owned by the owners (who have long left the property) however there are 3 liens totaling approx. $300K. I could negotiate this but this would not be a deal since property of this size are selling between $270 to 350K. However, it will come up in early 2015 on the foreclosure sale.

OK, @Lizina Green , you may have found a gold mine, but you haven't actually said anything about the value of the property. Is it worth anything? Has it fallen into decrepitude or could it be rehabilitated? 

If the property is still valuable enough, you could talk to the owners about selling the property to you anytime up to the day of the auction. They seem to be completely disinterested in the property. Perhaps they would be willing to sign the deed over to you if you'll take over payments; kind of like taking over a car payment for the pink slip. If you take the deed, you'll also get the liens, junior, senior and everything else. What encumbrances are there on the title?

Before taking title secure the permission of the owner and negotiate any junior liens down. This should help create equity.

How much is the defaulting lien in arrears? Can you bring the loan current? Can you maintain the payments going forward? If you fix the place up, how much would it be worth? If you just made it clean, safe and livable then rented it out, would it cashflow? Even an underwater property can sometime cashflow. 

The bottom line is this, yes, you can do this. That being said, until you have more info about the deal, no one can say whether or not you should do this deal. I've asked you a bunch of questions, so if you answer, I'll answer you. Fair enough?

All the best.

I am gathering info. I will let you know the details. Only thing I tell you from latest sales of homes in the area in the past 6 months according to Zillow is 295 to 455K. Only thing I know is the standing mortgage balance is $286K not counting interest and the other liens. The bank is JP Morgan. I would have to talk them down quite significantly to get a deal. Not sure how low banks are willing to go.

I have analyzed the property and feel it would be a good deal but of course at the right price. I will let everyone know what happens. Any tips when negotiating with a bank.

Prior to the auction, the Only choice is a short sale.  Without the owner's cooperation this is not possible.

Thanks. I have contacted the seller and she does not seem to want to even deal this house.  Should I contact the lawyer for this case and try to negotiate?

Thanks

Update: I finally was able to speak with the owners of the property who seemed to be interested but was not ready to negotiate. I was told to call back in 1-2 weeks. So its on my calendar. We shall see.

I question for myself. Did you go to the county clerk to get the info for this? I found a house that I believe is foreclosed on and just not sure which department to contact to get info?

figured it out..

Sounds like this would be a short sale that you have the potential in on to place an offer.  You'd need to get the property listed and full cooperation from all borrowers as they would need to provide their financial documentation. I'd be trying to get authorized with all lien holders to conduct real research on the account. I'd be trying to educate the homeowner on the befits of a short sale vs foreclosure as there may be potential benefits in regards to credit reporting, tax liabilities, and having a deficiency judgment waived. 

Although it may be a bit over your head you could send an offer to the 1st mortgage holder to buy their mortgage for say $150k.. Then get the seller's to deed the property over to you for a small fee say $5,000.   Then you could continue the foreclosure process as the 1st lien holder and wipe out the other liens. 

Originally posted by @Ray Slack :

Although it may be a bit over your head you could send an offer to the 1st mortgage holder to buy their mortgage for say $150k.. Then get the seller's to deed the property over to you for a small fee say $5,000.   Then you could continue the foreclosure process as the 1st lien holder and wipe out the other liens. 

you can foreclose on yourself ? Can you please go into details. Thanks in advance 

your not foreclosing on your self your foreclosing out a mortgage that was taken out buy someone else. you foreclosing that debt just because you happen to be the new bene makes no difference.. issue here is buying the note would be pretty difficult one off.. this note is probably part of a very large package or tape... Dion will probably end up with it.

Yes, I tried but the current owner is not receptive to the idea. She is in foreclosure due to divorce and I think she just wants this to end. I will keep trying until there is final judgement then hopefully buy from the bank directly. 

Originally posted by @Ray Slack :

Although it may be a bit over your head you could send an offer to the 1st mortgage holder to buy their mortgage for say $150k.. Then get the seller's to deed the property over to you for a small fee say $5,000.   Then you could continue the foreclosure process as the 1st lien holder and wipe out the other liens. 

If you do buy the first position mortgage, you do NOT want to get the deed from the borrower while there are junior liens that remain to be paid; if you get the deed from the borrower, you cannot foreclose the junior liens to extinguish them - you must pay them off. So, if you get the first position mortgage, then you want to foreclose to extinguish the junior liens from being attached to the property. 

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