Re: Can you finance a foreclosure purchase? - Posted by Elizabeth (NJ)
Posted by Elizabeth (NJ) on August 15, 2003 at 16:52:46:
I specialize in bankruptcy law, am an paralegal (not an attorney) and operate my business pursuant to 11 U.S.C. Sec. 110. Nothing I say here may be construed as legal advice which I am not authorized or licensed to give.
Yes, you must have a cashier’s check for at least 20% of the purchase price at the auction, then the balance will be due in 30 days. However, keep in mind that the price you pay at the sheriff’s sale will be higher than you would pay pre-foreclosure.
Why not get in touch with the homeowner. Talk to her about putting her property into a Chapter 13 bankruptcy which will immediately stop the sale. This will give her time to reorganize under a Chapter 13 Plan, to determine the amount of her arrears, and it will also give you time to negotiate with the mortgage company to buy the property from her and allow her to emerge from the bankruptcy debt-free (as far as the home goes anyway).
If she successfuly sells the property, thus remedying the arrears problem, she is free to move forward with her life, you have a new property, and the bank got paid. Everybody’s happy.
Just another word: My experience (20 years worth) has been that mortgage companies foreclosing on a property are usually not amenable to short sales. That’s because they can wait until the sheriff’s sale and get what they need or more.
I can also tell you from experience that most banks and/or investors run from foreclosures because they are a big headache.