How can I buy a foreclosure before the auction date?

Question

There's an auction on a single family in 3 weeks and it has a clean title. However, I have the funds to buy it now and would rather strike a deal before the price goes up at the auction. Does anyone have any experience with contacting the homeowners to strike a deal? I've done some research and see some suggesting randomly showing up at the house (don't want to do that) or sending a letter/mailer (those things are usually thrown out). If there's an alternative method that has worked for you, please share.

Mark Fries · Answer

Call them. Do some Google recon and find the number. Personally, I would just knock on door.

Jessica Cole · Answer

Got it. It sounded like another term for assumable mortgage, but I appreciate the clarification. Will definitely look into that as it would be a better option than assumable. And yes, I meant "lender" instead of "owner". Owner was just on the brain as I was typing, but my point was I didn't know that the attorney could do business at all. I was previously told that only the owner could make any sort of deal before auction, since the attorney doesn't represent them.

I find this all very fascinating. Really glad I asked and received all these tidbits. I've been to a few auctions and have been outbid, and it now makes sense that lenders could bluff. I have a real estate attorney I work with, and will get them involved if a deal is made. Thanks so much!

Jessica Cole · Answer

If I had access to someone who I could've talked with, I wouldn't have posted. I've asked around in my circle and no one has done this before. I'm glad this forum exists for that reason. I needed something beyond my research. Glad to hear you made your first mil this way - inspiring!

Jessica Cole · Answer

Thanks so much for this info! Replies to each point below:

1. I'm confident about the payoff amount as I've been watching this for a month, but only recently came up with the funds. The payoff amount was updated by $10K, but I always planned to offer about $10K more than what was listed to cover my bases. That now means $10K more than I planned. I will flip this, so I have wiggle room for other expenses.

2. I knew about this option, but I didn't plan on this since I want to flip the property. I'm unsure of how that would work since I would need the current owner to vacate. Does this assumable mortgage still work if I would ask the owner to vacate within 30 days after we close? Not sure if that part matters or not - let me know!

3. I do have the attorney's #, but didn't know they could possibly do business on behalf of the owner in that way. My research suggested that only the owner could make a deal. Nice to have in my back pocket, thanks!

Jessica Cole · Answer

Thanks, will try finding their number then.

How can I buy a foreclosure before the auction date?

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