Want to buy neighbor's foreclosure

4 Replies

The person who lives next door to me was listed in the paper this week to be in foreclosure proceedings. By Nov 2018 .

Mortgage was for 64000 current owners 24000.

Property would have a value of a minimum of 190 though I know he is a hoarder and the interior will need a lot of work and some work on exterior. I checked and they're No tax liens.

Our neighborhood is doing very well with home sales.

We have a decent relationship with him. So I think we could approach him. I would like to make him an offer to pay off his mortgage debt and hopefully limit the impact on his credit.  Then we'd obtain the property.  Move him out in 6 months. 

Could he still sell the house to me at this stage of the process? 

Updated almost 3 years ago

He paid off his past due amounts so I think it's no longer an option. This thread is closed.

I think it is a possibility. I would speak to a real estate attorney first, if that checks out then approach the neighbor. If they seem open to it then I would reach out to the trustee, who is typically also an attorney. 

The other thing to keep in mind is to be very careful with the owner staying for six additional months. It is sometimes hard to keep holdover tenants out, and without them doing additional damage. If you go this route then have a written agreement to the terms of the holdover, and how the home needs to be left. Possibly even do a cash for keys scenario where you give them a dollar amount to move and take the personal property and trash with them and leave the property in broom swept condition. 

Good Luck! Aaron

@Elizabeth Reynolds I agree with not letting him stay for 6 months. That's excessive. For a genuine hoarder, 6 months would not be enough anyway, heck, 12 months would not be long enough since they have mental blocks preventing them from throwing things away. You have to be the one to impose the deadline and stick to it. 60 days at most.