Posted by B.L.Renfrow on October 14, 2003 at 17:39:30:
How you proceed will be determined, in part, by how long the foreclosure process takes in your state, and whether the lender is required by law to accept reinstatement.
If the lender has already accelerated the loan, you may be out of luck as far as taking it subject to.
However, it’s entirely possible they are just fed up trying to deal with the owner, who has not been able to bring the loan current.
You should get an authorization to release loan information from the seller – or better yet, get on a conference call with the lender and the seller – and once you get to someone in the loss mitigation department with decision making authority, tell them (if it is true) that you are helping out the seller and you are prepared to wire the funds immediately to bring the loan current. Of course, you don’t tell the lender you are planning to take title.
As long as the bankruptcy trustee has released the property, you are free to make whatever deal you can with the seller.
If you are unable to reach agreement with the lender, go to plan B: assuming your numbers are correct (does the $103k include all the arrears and fees?) the balance is less than 65% of FMV, so you might be able to use hard money to purchase outright and pay off the first, or just take an option and market it vigorously and sell it at a discount. If you are in a state with a long foreclosure process, this could give you many months to find a buyer.