Can you buy a home from the owner if it is already in foreclosure?

Question

The auction is 1 week away and the owner still lives in the home. Wouldn't it be better for the owner if they had someone to just purchase the home?

Answer 1

Yes to the first part of your question and the Home is available 60-90 days from then unless otherwise specified...the real estate broker or mortgage place will love to unload this property ASAP!!!

Answer 2

Yes you may purchase a house from a person that is currently in foreclosure. Keep in mind that you have a deadline in which to purchase the house.

Real estate investors use this method to purchase property in most cases.. In the purchase of property using th is method, you are not required to qualify for a mortgage loan through a mortgage lender, you need no credit, nor would a credit report be ran.

There is no real estate agents involved, therefore no commissions to be paid.

You got through the back door and assume the current mortgage loan of the current home owner. This is done all the time. Escrow and title companies are equipped and know how to do this technique and have done it many times.

Normally in most states the lenders use the non-judicial foreclosure procedure. In using this procedure the owner has approximately 90 days to refinance or sell the house.

The lender will not and can not legally speak with you about a borrower's house, nor are they able to sell the house. Their name is not on the title deed. Being in foreclosure the homeowner is still on the title deed and may do anything to the property they see fit to include selling it or refinance the property.

If you would want to purchase the house, you would need to prepare a contract of the sale price, a date you would like to close the transaction, who would pay the closing cost,back taxes and possibly give something to the current homeowners. You would also need to include in the contract the clause "Taking/buying this property subject to the existing mortgage loan."

Once the sale contract has been prepared, each person involved in the transaction would need to sign and date this contract.

Take this signed contract of sale to your local title and escrow company to have the transaction closed legally according to any local, state and federal real estate laws.

You would have to have sufficient cash funds to bring the foreclosure current to include any legal, late and other fees that are include to bring the mortgage loan current.


If you don't have enough cash funds on hand to pay the mortgage current, bring the taxes current, and give the current owners a few dollars, this transaction would not work.


When you open escrow and title one of these companies will contact the current mortgage company to find out this cost and relate the figure to you.

The title or escrow agents would also be able to tell you of the back taxes owed.

Theses figures supplied by the escrow or title agents would be able to put the purchase price more in perspective and shape it up.there might be some adjustments made in what you would give the owners i their hands if the owed taxes are more than expected.

Once the transaction close, your name would be on the title deed to the property. The names on the mortgage loan would still be that of the owner you purchased the property from.

If you would want to keep the property for yourself,this is good. You would want to pay the monthly mortgage on time and with a check or other means where you are able to prove you paid the monthly mortgage for at least a year or so. the lender would not check as to who's name is on the check as long as the mortgage account number is on the check, and it is being paid on time.

Normally after a year or so with you paying the monthly mortgage and have the proof with canceled checks or bank statements, you are able to refinance the house as oppose to buying the house.

Of course to refinance the house with favorable interest rates, your credit score would need to be above 680 or for better rates in the 700 range, so if you have credit problems, iron them out during the 12-18 months of you paying then monthly mortgage.

It might be that you would find and read as many books on the purchase of pre-foreclosed houses and property.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Answer 3

NO, However you can buy from the owner the right of redemption on the property. Usually this is done because the lender will only bid what is owed on the property and no one else does. So if you want to buy the property for what is owed go ask the lender to sell it to you for what is owed if it is a good price. If they jack you around then go to the owner and give them a few bucks for their right to redeem the property after auction. Make sure you have the money lined up for the purchase. I love going back to the bank and talking to the people who told me I couldn't buy it for the same price the bank got it for.
Life's little pleasures

Answer 4

It would be better for the owner, but I think once it's in foreclosure, the bank won't let you out-and-out sell it. I'm pretty sure you have to just buy it in the foreclosure auction. Check with authorities :)

Answer 5

If it's in foreclosure, I don't think the owner could transfer the title to you. I think you need to deal with the lender. They might be willing to let you buy before the auction.

Answer 6

You can go to the auction. It's too late.

Answer 7

You gotta do the paperwork and get with the lender asap. and even then the lender may not want to work with you.
They do want thier monies and remimber cash talks.

Answer 8

Yes.

Answer 9

no- it`s called stealing! from the bank.