Once the house has been legally foreclosed on according to the foreclosure laws of the state in which the house is located, the process call for the new owner, the mortgage lender (bank) to complete the foreclosure process by holding an auction to complete the foreclosure process.
This procedure can not be altered, as this is state law.
If there are no successful bidders at the foreclosure auction, you may make a written offer to the new owners at this time and place a earnest money deposit check in the envelope with your offer. You would need to find out the mortgage lender or investor that held the auction to accomplish this. There are times when the mortgage lender would accept this offer it would eliminate the hold time and paying of a real estate commission.
You have to have cash available, not applying for a mortgage loan, not a pre-approval letter, but cash and ready to close in 7-14 days of acceptance of your offer. This has worked for me on more than a couple of times.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
After foreclosure is filed your friend can attempt a short sale. That's where the property is sold for less than the mortgage balance, with the bank's approval.
Prior to the auction, you will have to actually purchase the house from your friend since he is still the legal owner.
It probably isn't worth the time and money to pursue. Obviously the prior owner owed more on the loan than the house was worth or he would have tried to sell it.
No you can not. It is not legal for the bank to bypass the auction as part of the foreclosure process. They are required by law to attempt to regain as much of the stolen funds as possible.
No, you cannot. The bank must foreclose first and the property must go to auction.
You need to buy it from the former owner, the bank has no control until they foreclose on the property.
You can negotiate it with your friend, not with the bank.
nope
A person I know was in financial trouble, he abandoned his house and left the country.
I want to buy the house. I called the bank that owns the house, and they stated he is the original owner and only he can sell the house at this time.
The bank further stated once the foreclosure process is complete, the bank will attempt to auction off the house.
My question: is there a way I can negotiate the purchase of the house prior to the auction?
