lender willing to accept a deal before auction
We have done our due diligence (i.e. visit to the site, title search, hiring an attorney etc). on a property going to auction in a couple of months.
However, out the blue, we recently received a call from our attorney basically stating he can work out a deal with the bank before the auction. Is this typical? Would this be considered a short sale or a reo? Our attorney was firm in stating that the previus owner is not involed and the bank is the prime negotiator.
Also, because it won't go to auction, what happens to the junior liens and taxes? Is the bank responsible for clearing up the title and paying the back taxes? does anyone have any experience with this type of transaction or any opinions. Thank you for your responses.