Earlier today I was driving through my target area and came across a nice house with a fsbo sign in the front yard…I know it is vacant. Ironically enough as I was reading the paper tonight, that exact property is listed in the foreclosure section with a June 10 auction date. If the date has been set for an auction, can this person still legally be trying to sell the property? This is still all new to me, so any info would be appreciated. I plan on calling her tomorrow so I would like to have so feedback before then if possible. Can I still suggest a sub 2 to her if the foreclosure process is this far advanced? Thanks for your help.
Howdy Readt2invest:
They still own it. The mortgage company has no right to possession or ownership of any kind until they foreclose. If the property is being vandalized and entered by the public and can be considered a hazard the mortgage company has the right to have it boarded and secured to protect their interest. A lot of commercial notes give the lender the right to collect rent if their is a default which would also give them the right to enter the property. I have also seen lenders actually take possession before foreclosure in some cases but not with a single family property.
Some states even go further and allow the owner to redeem the property after foreclosure. This right could even be sold to other investors with a transfer of the deed. Some states this is only with tax sales.
You can still do a sub2. I have paid the back payments the day of the sale by meeting the trustee early that Tue am with a cashiers check. You need to work this out with the lender before hand as last minute deals take a few days to work out.
LOL and let us know how it goes
Thanks tedjr for the response. I am getting ready to talk to her. The sale isnt for a month but Im definitely not gonna wait till the last minute to start working out the details. There has been no vandalism on the outside anyway, and a few that ive talked to said she just remodeled the entire downstairs. The upstairs was updated a few years back. I think the only thing that was not done was a new roof, but its not in horrible shape where it would need to be replaced right away. I know she is pretty desperate to get rid of it (her brother just told my brother in law that this morning) Lucky for me I guess!! That would be nice as this would be my first deal, but Im not gonna get overwhelmed so that i dont miss something and get in trouble. Thanks again for the post and I will let you know how it goes!! 