How To Buy This House Before Auction Date?
I found a house that is NFS, the auction is Aug 18th. The balance on mortgage is 208k. They also haven’t paid taxes in a year. City tax lien. Haven’t found out much more will do. I am contacting the owner. Comps go for 375-500. House prob needs 50-100k of work. Time is a big issue auction is in like 2 weeks. What should I make as an offer to this guy? I was thinking 30-50k+ the loan. What options do I have do I have to pay him full amount to pay the mortgage before the auction. Can I get the bank to delay say a week to get full amount of mortgage. Can I take over the mortgage?What are my options here? How can I purchase this house before the Auction Date?
Really waiting on some advice before I send my letter to owner.
Thanks
2 Options:
1) Take property subject to the existing mortgage: get the deed, cure the default.
2) Put together a short sale package for the lender(s).
Jorge,
Thanks for reply. Just a few questions. You’re saying take control on the property and get the deed. What do you mean by cure the default? The auction is 2 weeks from Monday. I could see no problem working out a deal with the seller in that time. Giving him say 20k u-haul pay. So then I have the deed and what do I then do if it was a single mortgage? I just start paying the payments or pay the total amount of the loan right there to the bank? Will the bank delay that sale if I make a deal like this with the owner? Reason being I don't want to give him 20k, have the deed and the bank still foreclose and I am out 20k.
Thanks for your help.
You are asking the right questions but u seem to be new to this wanta risk your money and credit on something u do not know much about...I would go back and learn this stuff forward and backward before I lay BUCKS on the line.
Its your mulla!!!
SKI
Jorge 121,
So you get the deed and make the back payments. The loan is no longer in foreclosure and you've spent whatever all of the back payments equal to.
Why would the mortgage company be willing to deal with you? The mortgage is now current!
And what if the bank decides NOT to do a shortsale? Now you own a house for a mortgage of what the house is worth PLUS all back payments that you've made.
No one will buy this house for more than it's worth.
if you let the house go, you'll lose ALL the money that you paid for the back payements AND the bank is going to foreclose on YOU! Well, at least the person that is on the loan, but since you are the "LEGAL OWNER" of the property, it also affects your credit.
Am I correct in all of this?
Mrs. Meltzer
Twinkdogs, When a foreclusure gets set in motion the bank will set a date as to which the homeowner has untill to save their home by paying what is owed. This is called a cure date. When jorge says cure the default I'm assuming he means pay up.