Hello, I have a property that I am interested in. It’s due to go to foreclosure in about 2 weeks. I don’t think that would be enough time for me to do what I have to do in order to stop the foreclosure process so I want to know can I still work this deal even after it’s gone into foreclosure?
- It might not be too late. If you contact the seller and tell them you want to buy it then they can try and get an extension with the lender. If you can still do the deal, then you might be able to do a short sale.
Example: The seller owes 100,000
80,000 1st loan
20,000 2nd loan
The 1st may not budge, but the second might be willing to give up 10,000.
- Otherwise you can still cut a deal after it goes into foreclosure. You will just have to deal with the lender’s Realtor, instead of the seller’s Realtor. Might end up being the same person, or not.
The nice thing about catching it before foreclosure is you can get exclusive rights to the deal if you can work out the short sale. On the back-end you will be up against everyone else.
You can reinstate the loan until a day or two before the auction. I’ve bought properties with only 48 hours left in the reinstatement period. You have to get your title work done fast, but it can be done.
One the property is foreclosed on, you will have to wait until it’s listed with a Realtor (assuming the lender buys it at the auction). I hope your market makes more sense than mine, though, because the REO properties here are all priced WAY more than I would ever be willing to pay. And they are selling.
I think too many people have been watching “Flip This House.”