Posted by CS on October 16, 2003 at 20:55:59:
Would a sub 2 work in this scenario? Without knowing all the numbers it’s hard to say.
You might be able to get the lender to postpone the sale if they believed it would be in their best interest to do so.
Quick Question - Posted by David-OH
Posted by David-OH on October 16, 2003 at 14:38:59:
I own several two family properties that I have purchased either through a realtor or FSBO. I recently saw a two family property that was listed on the foreclosure sale section of the Sheriffs website. I have read about short sales and auctions on this site, but am not sure about where to start with this property. I have driven by the property and it is in fairly good condition. I would like to pick up this property before the foreclosure auction during the first week of November. Any advice on how to go about this? Should I contact the lender directly or the owner?
Thanks for the advice.
Re: CASH is king - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on October 17, 2003 at 17:01:10:
First contact the owner and find out how much is owed on the property. Then you will need to know all the specifics of how much cash is needed to bring the loan current and pay any other expenses such as insurance back taxes, and legal fees to date. Then you can add up all the stuff that is owed right now, and decide if you want to bring all the expenses up to date and buy the property from the current owner, subject to the existing loan.
It is very important to know the condition of the title right now before you decide. There could be leins, judgements and other problems attached to the title to the property.
If the deal is good, then you can pay all the expenses and have the sheriff’s sale cancelled. Then you can proceed with the closing of the purchase from the current owner.
Randy is partly correct. The lender can not sell you the house. But the lender can sell you the note. This is where the short sale concept comes into place. A few things are necessary to make a good short sale. Sometimes the lender will sell the note for less than they are owed. Thus the “short sale” term. They may not want the property and all the problems that come along with owning, and eventually selling it. It might be to the lenders advantage to sell for less money right now and be done with it. A major concern here is do you have cash, and can you close fast? If you do not have the cash, can you get it quickly? If the lender is willing to cut the price to less than is owed, they usually want to complete the deal quickly.
Another thing that you might want to look into is making the purchase at the sheriff’s sale. You will need to have the financing lined up if you do not have the cash now. This may or may not be a good deal, who knows? It is an auction, and it ain’t over till someone says SOLD.
The Owner… - Posted by Randy (SD)
Posted by Randy (SD) on October 16, 2003 at 15:28:03:
You must deal with the owner? the lender has no right to deal directly with you. The first step is to approach the owner/seller with a solution to their problem (most likely a purchase agreement) if the owner/seller agrees to sell then contact the lender (or more accurately the OWNER contact the lender and ask for a delay in the foreclosure proceedings due to the offer to purchase. The lender will most likely require proof of funds (documented ability to close) before they will entertain the notion of delaying the foreclosure so be prepared to act quickly.
Re: Quick Question - Posted by CS
Posted by CS on October 16, 2003 at 14:56:07:
Get in touch with the owner and try to work something out before the sale.
CS
Re: Quick Question - Posted by David-OH
Posted by David-OH on October 16, 2003 at 15:02:05:
Would we have to close on a sale prior to the auction which is about 2 weeks away, or would a contract for sale be sufficient to postpone the auction? Please explain how this might work.
Sorry about the newbie question. Thanks for the help.