I have a property on assignment as of last week. The homeowner was served papers of foreclosure by the sheriff 3 days later. Can I still try to negotiate with the banks on this one or is it headed to auction? How much time do I have before the auction and can I delay it to find a buyer and negotiate with the bank?
The answer to this question depends on the foreclosure laws of your state.
For starters you should have written permission from the borrower to negotiate with the lender. You also need to know ALL the procedures for a short sale.
In my state the borrower would have 6 months until the sheriff’s sale to make up all late payment’s and late fees to become current.
After the sheriff’s sale comes the redemption period. The bank then can demand all interest, fees, legal costs, and the entire loan balance. This could also last several month’s. This time period can vary a lot.
In some states the whole process takes a couple of months in others it can drag on for over a year.
So if you do everything correctly and your seller is willing, you might have a year to put this deal together. :smile