Let me start by saying that I’m new to dealing with foreclosures. I contacted someone in foreclosure yesterday and he stated that his condo had already been to auction a month earlier. According to my preforeclosure list, it showed his original loan and showed it going to auction in May. He told me that he is trying to come up with 15k to get his loan reinstated and to get his property back that he’s been paying on for 20 years.
Is there anything I can do to help him in some way? He told me that the persons that bought the property at auction are having some troubles and are trying to unload it quickly for some reason. I could go to them directly and purchase the property before May auction, BUT since the owner is trying to get his property back I don’t want to ruin his chances of that…
What I could do, is contact the investors that own the condo now and get it off of them for a good price. If the owner has a chance to get his condo back, then I don’t really want to stop him from that. What do you guys think??
I think you need to find out exactly who owns it now. If it was auctioned already and purchased, why is it going to auction again? How can he get his loan reinstated when it has been auctioned? The investors could have bid on it at auction, and didn’t follow through on the purchase. Where I am, you have 24 hours, cash for the full amount, and if you fail to pay it goes to the next bidder, or auctioned again. Contact the trustee who is auctioning it and see if it is still scheduled, or try to find out more info.
Thanks for the reply. My dilemma is that I’m not sure I should act on this deal since the owner is trying to get his condo back. He says if he comes up with 15k, the bank reinstates his loan. I’m not sure if he’s lying or what, but if he has a chance at getting his place back, then I don’t want to stop him from that. My feeling is that perhaps he can’t come up with the money though…
What do you guys think?? Also, I told the seller over the phone I wouldn’t interfere with him trying to get his place back. He sounded desperate to get his place back. Not so sure he can come up with the money though…
If an auction occurs only one of two things happen. Someone buys it above the opening number posted by the mortgagee/bank’s representative/lawyer, or the bank owns the property as REO (real-estate-owned).
A short sale was not attempted or successful prior to the sale at auction, the process is followed in public setting, ‘by the rules’ and then the new buyer is bound to procure the property as bid.
As for the owner tryng to get his property back, many (not all) jurisdictions have a “right of redemption” process. Again, a legally systematic process to be followed.
But be careful… there is a concept out there called ‘bank fraud’ which is a very slippery slope. Typically I would want to stay miles away from the hint that a property was brought through a short sale or an auction only to be delivered back to the original owner without the proper process. Banks and the law could interpret such action as an end run around the system.
It does not seem like all the facts are here.
Yea, I’m not sure of all the facts…The guy that owned it/lived there (original owner) said he owed some money (like 4k i think) and he couldn’t pay so it went to auction around Feb 08. He then says that the “investors” that bought it in auction are desperately trying to get rid of it or come up with 15k. He then says if he comes up with 15k, he gets his original loan reinstated. He also said that the bank keeps delaying the 2nd auction to try to give him a chance to come up with 15k. If I lookup the property on the appraisal, it isn’t owned by him anymore. It is owned by a company (the investors).
This is all the info I have without talking more to him or the “investors”. I didn’t want to ask him much more questions, because he was getting very agitated about not having his place anymore. I could contact the investors to get more info, BUT I did tell him I wouldn’t. Should I call them, just to get more info??? I’m not sure I want to get to close to this deal because of all the crap involved and the fact that I told him I wouldnt.
Although it doesn’t seem like he will be able to come up with 15k, I wouldn’t want to be the reason he doesn’t get his place back if he does end up getting the money together…
First and foremost is it worth pursuing? What are you going to do with it? What is it worth and how much does he owe? What did the investors buy it for, or selling it for? Just some questions to ask yourself to see if it you should keep following up.
The numbers appear to be inline. It is less than .50 on the dollar. This is notthe problem. Again, please answer my previous questions…Would you contact the investors/current owner and do this deal if you told the original owner that you wouldn’t (since he’s trying to get his place back)??
My intent is to wholesale this.