Question from a client:
I’ve had my eye on this house [Address]. It goes on Auction on [Date], 2009. Is it possible to buy it before that, and will the bank let us look around in it? It is owned by [Trustee Name].
Thanks, Client
Unfortunately, we would not be able to represent you for the purchase of a foreclosure. It’s really a different animal than our business model covers. But I did a little digging for you, and thought you might be interested in knowing the following:
This house is not owned by [Trustee Service], but is still owned by the owner, with a lien on it at [Lender] for $[Loan]. The foreclosure process does not allow a sale or even access at this point. This is the period of time during which the current owner, should he find the money to come current with the credit union, could redeem the house and get it back. By law he must be given that time. If there is a second mortgage, that could prevent a sale from proceeding. Many factors can delay or cancel an auction. Foreclosure is highly regulated by state law, and they must follow the time lines set out in the laws. There is no short cutting that process once it’s handed over to a trustee.
Here are the risks. There may be tax liens, utility liens, mechanics liens, or damage that you can’t know about till after the sale. Buying a foreclosure is speculation. Some folks win. Some lose. People who are losing their homes often don’t take real good care of the home or their financial situation, leaving a title mess as well as a physical mess for the next guy.
So there is not any access to the house. The only way to buy this property is to be present on the courthouse steps on the sale date and hope that it isn’t delayed and that someone else doesn’t beat you out. You must have cash or it’s equivalent as the price is due and payable immediately. (There are some short term loans at high interest rates that are used for the purpose, but you do not hold those loans long–you refinance ASAP.) Foreclosure sales can be postponed for lots of reasons.
Caveat emptor (“let the buyer beware”) is the watchword where foreclosure purchases are concerned.
Hopefully I’ve answered your question–
I don’t recommend foreclosure auctions to many people.
They are for die hard investors with cash money to burn, in my opinion.
We can help you with bank owned properties or ANY property listed in the MLS, Short Sales, or Pre-foreclosures as long as they are listed in the MLS. We can also work on For Sale By Owner homes in any of the above states as long as the owner will work with buyer agents.
Lynette Hensley
Associate Broker
Tags:
auction,
buyer agent,
Foreclosure 