I am working with a homeowner whose property is going to be auctioned off on November 21. This will be a sheriff's sale. The house is in MN, Dakota County.
The ARV and the loan balance owed make sense and it can be wholesaled. Do I just submit a purchase agreement and run the transaction like a normal wholesale deal?
Does the deal have to be compete before the sale?
I know in MN the homeowner has 6 months after the sheriff's sale to redeem the property.
Any suggestions are greatly appreciated.
Suggestion: Don't tie up someone's property in foreclosure, unless You have the ability/intention to close if you can't find a buyer.......you'll likely just tie them up until they don't have time to sell to a real buyer.
It needs to be an-arm-length transaction. Best is to hire a realtor to negotiate for you. Needing a former distressed property purchase contract offer. The EMD will be held in escrow and if you do not want it later, you can lose your deposit.
I would make sure you are confident you know the loan balance including all the late payment fees, legal fees associated with the loan, etc. Your contract with the owner will not mean anything if the bank wont accept the price. If you are planning to wholesale this could waste a lot of your time and really make the seller upset. If the numbers make sense I would recommend you trying to purchase it.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.