Can you purchase a home before it goes to auction?

Question

Can you buy a house that is listed in a bankruptcy proceeding before it goes to auction? I heard that you can petition the court. Is this true? How does this work?

Answer 1

The redemption period will determine that, there is a cut off date that ends owners right of redemption. After such the trustees sale or sherrifs sale can only be stoppd by the lender, trustee, or for a short time, a bankruptcy filing. The filing places a stay on all debt collection activities and the federal bankruptcy judge will often lift the stay for the lender to foreclose. You can attempt to make your purchase and inform the trustee that you would like to buy the property. The previous owner must allow your sale and sign your purchase agreement. The lender cannot sell the property to you until they own it. The act of foreclosing is the lenders way of legally removing the owner from title. As the property is still in affect the defaulting owners, you need their approval to buy it. The owner isnt in a situation where they can get greedy nor can you. Your offer must cover the lien foreclosing, the trustees fees, be non contingent, and approved by the lender. It is in the lenders best interest to not have another property on their books. Make sure you have a lien search performed so your not buying a junior lien. The court is not in the business of selling homes and petitioning them might make for a longer road to travel. Remember bankruptcy is a federal thing so you will have to go to the county recorders office to examine title. Then the federal courthouse to petition the bankruptcy judge for releasing of the property from the stay. The trustee of the foreclosing lender can ask the lender for a extension of the sale date. Any seller that wouldnt accept a decent offer after filing a bankruptcy will spend years wishing they had. In the credit world a double negative is the kiss of death. I wish attorneys would inform their clients of that before eagerly taking their money and dooming them to such a fate. Since the new bankruptcy laws have came into affect it has actually became easier for lenders to get the stay lifted and harder for people to be protected by filing a bankruptcy.

Answer 2

Wow! How did Mike get 2 thumbs down for his answer? He purely knowledgeable every person right here on precisely what happens at a trustees sale, and that that is in certainty diverse from whilst somebody auctions their own residence. All that i might upload to what he suggested is this - FEW every person is knowledgeable adequate and experienced adequate to purchase on the courthouse steps. In immediately's marketplace there are a lot of super deals to be bought AFTER the foreclosures public sale. purchase a HUD domicile, a VA owned domicile or a lender owned domicile. Your Realtor could make it easier to to with it, you get to view it until now making an grant or a bid, you will get a call coverage and %. out one which you will get a private loan on.