What is The Process For an Investor To Stop a Foreclosure quickly

Question

I have a potential foreclosure case where the home is scheduled for auction in 5-days.  The owner is willing to simply let it go for $6,000.00 in moving expenses.  I would have to pay the arrearages of $30,000.00.  The loan balance is $175,000.00.  The ARV is $500,000.00 and the rehab is only 50k

But I don't have enough to purchase the home before the foreclosure.  It would take me a week to 10 days to close, and the auction is scheduled for five days.  What do I or the homeowner do to get the bank the to extend the auction date 30 days?  Could you share with me step by step what we need to do?

Thanks

Tom Mole · Answer

@Kenneth Sesley, it sounds like you've found a unicorn. They're pretty hard to find, so don't let go, if you can hang on.

First of all, do you have a signed purchase agreement with the owner on title? If not, get one. When you have that in hand ask the owner to call his foreclosing lender right away and ask for an extension considering that he has a buyer in hand. Often lenders will postpone by "beneficiary's request" if a sale will cover the arrearage and costs. You have plenty of latitude in you offer for that. If this is a big bank, like B of A or Chase, there may be just too little time to work through their process. (I know. I lost one in my neighborhood with just this timeline. Sigh!)

At the same time contact the trustee and ask them to postpone the auction considering that their client (the foreclosing lender) will get everything they ask for. The beneficiary can postpone or cancel the auction any time up to the opening of the bidding, so work fervorishly. There are no guarantees that you can get the auction put off, but you may as well try.

If you fail to get the postponement you need, watch the auction results. Of all the auctions scheduled for a given day about 80%-90% are cancelled or postponed for one reason or another. Often the reason listed is the mysterious "Beneficiary Request" or "Trustees Discretion". That will usually buy you another 21 days here in California.

Be ready to make good on your offer the bank is unlikely to give you a second chance.

This is the triage plan. Next time see if you can't get a little more space on your timeline. LOL

Cheers!!

Allan Rosso · Answer

@Kenneth Sesley why don't you try calling the foreclosure attorney and see if he/she will work with you? I would have some sort of business plan together, that way you have answers ready before the attorney asks the questions. I'm not sure how the whole process would work step by step, but I feel that might be a good starting point.