Home owner waited until 7 days prior to auction date to call me

8 Replies

A San Diego homeowner contacted me today asking for help - his house was going into foreclosure and he wanted to see if I could help.  The only problem is, the recording date was 8/31/2017 and the auction date is 4/9/2018 - less than a week away. The way I see it he only has two options - pay all the back money owed, or file for bankruptcy. He has an attorney as well.

Anyone ever close on a pre-foreclosure in 6 days? 

Depending on if any review is open with the servicer currently and history of the account, a postponement may still be possible.  If a postponement request is denied then filing a BK may be the only option to get additional time. Does this property have equity or is it upside down?

Borrower loses legal right to reinstate in about two days so, unless they are stroking a check to reinstate within two days, or a check to pay it off in the next seven days, BK would be the only thing that would guarantee a hold on a pending sale...if you can't compel them just because.  Even a pending sale does not compel a servicer to hold. No requirements to hold within 36 days of sale date.

Property has equity.

Originally posted by @Kevin Ely :

Property has equity.

 are you trying to wholesale this or buy?

If you’re paying cash, that is Plenty if time.

The oreforeclosure game, especially since so many end up like this at the 11th hour, is a game for Cash buyers.....not those needing to finance or trying to wholesale.

I’ve never liked the idea of wholesalers playing in this arena anyway.....they often will tie up an owner who is on a clock, then they can’t flip it, and it’s like “oh well, it didn’t work out” when the owner Could have sold to real buyer and now likely doesn’t have time to do do.

I'm trying to buy this but still even with cash, has anyone closed in 6 days?  There are still COE processes that cannot be done in that time and the bank will not care until they have their money but that cannot be done with a briefcase of bills.

many many many times if your going to buy pre foreclosure you MUST be able to perform in 24 to 72 hours.. peeps being Peeps  they procrastinate.. and NOW they are highly motivated.

@Ron S. even though CA law says 5 days and full payment needs to be made this can be waved by the bank.. they are not obligated to though as you so correctly point out.

basically you need to do these deals outside of escrow you need to know how to do your own quick search and take the title risk.. then you get the seller to sign a grant deed over to you and you go record it.. then you get your funds wired or cashier check couriered to the trustee.

that's how we did it.. not enough time to use title company.. that's why its so profitable if done right 98% of your competition simply can't do this  either lack of knowledge or lack of funds or both.. I loved it when i did it..

Originally posted by @Jay Hinrichs :

many many many times if your going to buy pre foreclosure you MUST be able to perform in 24 to 72 hours.. peeps being Peeps  they procrastinate.. and NOW they are highly motivated.

@Ron S. even though CA law says 5 days and full payment needs to be made this can be waved by the bank.. they are not obligated to though as you so correctly point out.

basically you need to do these deals outside of escrow you need to know how to do your own quick search and take the title risk.. then you get the seller to sign a grant deed over to you and you go record it.. then you get your funds wired or cashier check couriered to the trustee.

that's how we did it.. not enough time to use title company.. that's why its so profitable if done right 98% of your competition simply can't do this  either lack of knowledge or lack of funds or both.. I loved it when i did it..

 We are on the same page...

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