If it's in pre-foreclosure, you can bring it out simply by paying the back payments and penalties. The owner could either sell it to you or simply sign it over to you with no further money changing hands. He'd still be on the mortgage, but you'd own the house. And you could take over paying the mortgage and, at some point, refinance into your own name. This is called a "Subject-To"--you're acquiring the home subject to the existing mortgage.
Your relative might attempt a short sale--ask the bank to allow the property to be sold for less than what is owed on it. But you have to be careful, since banks don't like short sales to occur between relatives. There are ways around it, though. Ask a real estate attorney for advice.
Or you could let the property be foreclosed upon. Eventually, the lender will put it back on the market and you can attempt to buy it at that point.
Hope that helps.
Contact the lender.
It could be tough because you are a family member and it raises all sorts of red flags at the bank and banking regulators. The only sure fire way to buy it would be the home for the balance of the mortgage that your relative owes. Your real estate family member looked at it and estimated the actual market value was $30k. The bank will not be interested in a short sale with you due to your relationship. Waiting on the Sherriff sale or foreclosure auction is possible, however the bank will bid up to the mortgage balance, (some times and rarely they will let a problem property go and write off the loss.) And it will be a cash sale within 30 days.
Donald is wrong. Your relative cannot sell you a house he doesn't own & him stay obligated. You're not going to get it for less than what's owed on it. You will have to bid on it like everyone else.
You would offer the money at the auction. By federal law the house has to be auctioned, you can't just buy it without it being available to the public. Expect to be evicted before it is auctioned. It is not normally auctioned with squatters inside. You'll need the money in cash.
Yeah, offer them the outstanding loan amount, or maybe 80%. They might short sale that thing to you.
So not too long ago one of my family members stopped paying his mortgage, and abandoned his house. I have been living there and maintaining it because I want to buy it.
The area is not the greatest, but it is not too bad. It was estimated to cost about $110,000. Another real estate agent in my family mentioned that I could possible buy the home for $30,000, because of how beat up it is, and the area is not that great.
What is the best way to go about buying this home? It is in pre-foreclosure right now, so it isn't scheduled for an auction or anything yet.
Is there a way I can offer a certain amount of money to buy the house? What can i do?
