Tips for Buying a Home Before it goes to Foreclosure
Hi all,
One of my neighbors is a crazy old lady/hoarder and she is some $13k behind on her HOA payments. The POA Board has placed a lien on her house and she is about to go into for foreclosure.
I want to make her an offer on her house, but would like a little advice on what I'm about to get into to formulate strategy. I have a friend on the Board and they've given me a little bit of detail on the case.
- In May 2016 the initial demand letter was sent and a lien placed on the home
- The lawsuit was sent to the court in August
- On January 11th the attorney for the Board will be filing a Motion for Service by Publication
The house is worth at least between $150 and $200k. She owes $17k between the Assessments and fees, and has a $4,424 tax bill pending for 2016.
I'm assuming the Motion for Service by Publication is to initiate the foreclosure proceedings. My questions are as follows:
- When should I make an offer? Right now or wait until she's further pressed?
- Do I need to close before the foreclosure hearing starts? She has 30 days to file an answer with the court, so as long as I close in that period could it be closed out?
- Would $90k be good initial offer? That's 70% of an estimated value of $144,900 ($100/sq ft)
- I know the house is a mess inside (hoarder). Outside it's in really good shape. It's in an awesome neighborhood.