Can preforeclosure owners in Florida sell their home at any point all the way up to 5 days before their auction date? Or is it right until their final judgement, which usually comes ~30 days before the auction date?
Also, once the owners agree to sell their home, and you provide them with money, they would have to pay off their loan + any other fees. Is it still possible for them to do this 5 days before auction, or is it more realistic for for the lender to cooperate before final judgement?
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
An owner can sell anytime before the auction. However, the logistics can be difficult. A buyer would need the payoff and to get funds into the hands of the plaintiff or their attorney prior to sale. I suspect the transaction would need to be recorded prior to sale as well (you would need to talk to your attorney on that point). I just purchased one three days before auction. It was recorded the same day and new ownership was reflected immediately in the public records. However, even though the plaintiffs attorney was notified and proof sent, they didn't have time to remove it from the auction website. I watched it "sell" to another bidder. They were pretty excited over their "purchase". They were then informed that they weren't "the buyer" and after checking with the title company they were forced to move on. Several days after the sale the plaintiffs attorney filed a motion to vacate sale, vacate foreclosure action, etc. I just received the approved motion signed by the judge. One note on buying foreclosures in Florida: the owner has 10 days to redeem their property (unlike a tax deed sale). In the current transaction, there was no right of redemption because the property was willingly sold prior to foreclosure sale.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
An owner can sell anytime before the auction. However, the logistics can be difficult. A buyer would need the payoff and to get funds into the hands of the plaintiff or their attorney prior to sale. I suspect the transaction would need to be recorded prior to sale as well (you would need to talk to your attorney on that point). I just purchased one three days before auction. It was recorded the same day and new ownership was reflected immediately in the public records. However, even though the plaintiffs attorney was notified and proof sent, they didn't have time to remove it from the auction website. I watched it "sell" to another bidder. They were pretty excited over their "purchase". They were then informed that they weren't "the buyer" and after checking with the title company they were forced to move on. Several days after the sale the plaintiffs attorney filed a motion to vacate sale, vacate foreclosure action, etc. I just received the approved motion signed by the judge. One note on buying foreclosures in Florida: the owner has 10 days to redeem their property (unlike a tax deed sale). In the current transaction, there was no right of redemption because the property was willingly sold prior to foreclosure sale.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@John Thedford Good explanation, except.....there is no 10 days to redeem, redemption possibilities end when the auction occurs. The 10 days is to file an appeal/contest an improper foreclosure proceeding, not to pay off. And yeah, I've seen your "plaintiff attorney failed to cancel the sale" scenario quite a few times.
title company that just closed on the transaction mentioned above stated there is a 10 day right of redemption. I will do some research. I know there is NO redemption on tax deed sales.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@John Thedford Surprised they called it a redemption period. It is however a "period of uncertainty", since it's not a done deal until the CT is issued. The only issues I really see during this 10 day period is 1) plaintiff moving to vacate the sale because it was settled/dismissed, as in your case 2) plaintiff moving to vacate the sale because they failed to enter their own bid, and the property went cheap.
On the tax deed sales, remember there Is that small redemption window...after the auction, up until the buyer actually pays for the sale and the tax deed is "issued", usually a few minutes after you pay for it. I've seen guys redeem during this "window". Guys who wait until the allowed next day to pay, run that risk.