Seller has entered foreclosure 9/20/18, can I purchase it?

6 Replies

Home owner, who is represented by an attorney, has filed for foreclosure 9/20. Paid 155k back in 2006 for the property. Actual value now 190-210k. 

I contacted the attorney and left a voicemail with his assistant, but wanted to jump on BP and see if anyone has ever known about a property that goes into foreclosure and if it is possible to acquire the property from the bank/asset manager prior to it going up to auction. 

Any tips? 

I fear that by the time it has been foreclosed on maybe they are unable to sell anywhere else BUT the auctions/MLS.

Cristian

Originally posted by @James Sapia III :

I’m not sure about other states but in Maryland if the foreclosure process has started that’s considered predatory.

What's considered predatory? Selling your home? I think I know where you are headed with that but absent any predatory allegation, anyone can sell any home they want until it's no longer their home to sell. Selling the home can't be predatory. Coercing the homeowner to sell to you with fraudulent intent may be something wrong but that would apply whether it was in foreclosure or not.

Just selling a home that may have a foreclosure notice has nothing to do with predatory lending on its own.

@Ron S.  Perhaps predatory was the wrong word to use in this circumstance, although I believe it is suitable.  I was not referring to any sort of predatory lending. The original post is referring to  an investor purchasing a  property in foreclosure , so I am not sure where lending would come into play.  Just because "predatory lending" is a term in the RE world, does not mean I am unable to use the term "predatory" in reference to another real estate act.   Of course selling the home isn't predatory... this post is about an investor buying the home that is already in foreclosure from the homeowner occupant . I know that once the foreclosure process has started  IN MARYLAND, if the home is owner occupied, contacting a homeowner to purchase the home and stop the foreclosure process is in fact illegal. Investors who have marketing techniques that say "stop the foreclosure" can be fined up to $5,000 and 3 years in jail.   This is all because of the  Protection of Homeowners in Foreclosure Act (PHIFA)  .Theres not really a debate to be had here.  Its just a broad law that is only enforced in a few states & makes purchasing a home from the homeowner already in foreclosure not legal. With that being said, it varies state to state & is still possible and legal in many states. 

https://alkonlaw.wordpress.com/2013/03/13/foreclosureprotection/

https://tpf.legal/protection-of-homeowners-in-foreclosure-act/

Originally posted by @James Sapia III :

@Ron S.  Perhaps predatory was the wrong word to use in this circumstance, although I believe it is suitable.  I was not referring to any sort of predatory lending. The original post is referring to  an investor purchasing a  property in foreclosure , so I am not sure where lending would come into play.  Just because "predatory lending" is a term in the RE world, does not mean I am unable to use the term "predatory" in reference to another real estate act.   Of course selling the home isn't predatory... this post is about an investor buying the home that is already in foreclosure from the homeowner occupant . I know that once the foreclosure process has started  IN MARYLAND, if the home is owner occupied, contacting a homeowner to purchase the home and stop the foreclosure process is in fact illegal. Investors who have marketing techniques that say "stop the foreclosure" can be fined up to $5,000 and 3 years in jail.   This is all because of the  Protection of Homeowners in Foreclosure Act (PHIFA)  .Theres not really a debate to be had here.  Its just a broad law that is only enforced in a few states & makes purchasing a home from the homeowner already in foreclosure not legal. With that being said, it varies state to state & is still possible and legal in many states. 

https://alkonlaw.wordpress.com/2013/03/13/foreclosureprotection/

https://tpf.legal/protection-of-homeowners-in-foreclosure-act/

 Learn something new everyday. I will do some research and see if that applies here in Florida.