NEED HELP on "Just before forclosure sale" - Posted by ParisLee

Posted by JeneanNC on March 07, 2000 at 10:52:51:

What is a deed in lieu verses a short sale?

NEED HELP on “Just before forclosure sale” - Posted by ParisLee

Posted by ParisLee on March 06, 2000 at 23:39:16:

This is my first time to “try” and go after a foreclosure, just short of the sale on April 18th. I spoke with my real estate agent today, she didn’t think I could make an offer at this time and stop the forclosure proceedings.
Anyone out there that can help me determine if this is true. OR, CAN I MAKE AN OFFER???
I want to make an offer “BEFORE” it goes to auction if anyway possible. I have most of the information on the property, what I don’t have is what the banks asking price is. All I get is a recording when I try and investigate more.

HELP on “Just before forclosure sale” - Posted by Bud Branstetter

Posted by Bud Branstetter on March 07, 2000 at 09:38:16:

It bothers me when you say you have MOST of the information. Since they don’t own the property yet they will not discuss with you. What they will do is after you have a contract with the owner or the deed they may discuss a short sale. You likely will have to start dealing with the foreclosure trustee first. The other place to start is with the foreclosure dept. of the lender. These numbers should be on letters sent to the owner. There is a lot of difference between reinstating an assumable loan, rescuing a non-assumable, an all cash payoff and a short sale.

Re: NEED HELP on “Just before forclosure sale” - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on March 07, 2000 at 08:42:28:

Hi Paris,
First of all, you will need some cash. You won’t need the whole purchase price, but you will need a sufficient amount to do the following:

  1. Bring the loan current (catch up all of the back payments and late fees).
  2. Pay all of the fees that have already been incurred concerning the foreclosure sale, such as filing fees appraisal fees, the banks attorney fees, etc.
    If you do not have the cash you might want to find a partner, who does have the cash. In essence you buy the house today, and there is no foreclosure sale. You might take title “subject to” the existing loan; and possibly the bank would allow this. If not you might need to refinance later, or flip this deal. What you are attempting to do is very doable, but it must be done quickly…time is of the essence (you snooze you loose).
    One more thing YOU NEED TO FIND A COMPETENT REAL ESTATE AGENT. Any real estate agent who does not know what has been stated in this post should not have a license to engage in the real estate business…ED

Re: NEED HELP on “Just before forclosure sale” - Posted by JoeKaiser

Posted by JoeKaiser on March 07, 2000 at 24:30:32:

If you’re trying to buy before the sale, why are you calling the bank? They won’t have an asking price since they don’t own it, yet.

You can always stop foreclosure at any time before the sale by paying the thing off, and you do that by contacting the owner and cutting a deal with him/her.


Re: Bud can you help with these questions? - Posted by JeneanNC

Posted by JeneanNC on March 07, 2000 at 10:47:22:

Bud, I have a question about your comment on the differences between a reinstate, all cash or short sale.

What is a short sale? How do I get the bank to consider a short sale if the seller has deeded me the house? If the bank short sale, which I think it means that they will take less than what is still owed on the property? Will the amount that is short still show up on the sellers credit as due or a judgement or charge off? Will it count against the sellers? Please help me with these questions, I have had this deal on the table for several weeks now. The sellers does not want a short sale if it will still count against them on their credit.

I have a seller who signed the deed over to me. The loan balance is $82k. They are in a bankruptcy and have $22K in the arrears. I want to offer the bank $80K and give the sellers $2K so that they can move. How will the bank treat the $22K plus attorney fees if they accept the offer of $80K.

The bank gave the sellers the option to short sale the property. This property is a SFH with FMV of $110K max. It needs about $3k to $4k in repairs.

Can you help me make this a good deal?

Re: NEED HELP on “Just before forclosure sale” - Posted by Ben in Ohio

Posted by Ben in Ohio on March 07, 2000 at 07:08:41:

Joe–haven’t you ever done a short sale, or a deed in lieu?

Re: Bud can you help with these questions? - Posted by JPiper

Posted by JPiper on March 07, 2000 at 19:58:23:

If this seller is in bankruptcy, did the judge approve this sale? If not, he/she should have. Be careful.