Need help Urgently! Few days from foreclosure, what do I dooo?

Hey everyone,

I have a homeowner thats only a FEW days away from foreclosure. I made him an offer that would allow him to walk away with about $15k in his pockets. Still, he’s not accepting because he feels he should get a lot more, and/or he’s waiting for a miracle payment from a family member.

Again, this person will go into foreclosure in just a few days!!!

I’m not trying to cheat him, but does anyone know how I can get in touch with his bank in the case that they DO foreclose on him. At that point I would like to just purchase the house right from the bank. How do I do this? When can I do this?

Also, once the foreclosure date comes, how long do the owners have before they have to vacate the house?

Would anyone else approach this differently??

Isn’t denial great? Tell him the cold hard facts. Be blunt if you have to.

Sir/ma’am, in X days you will lose this house. Let’s face facts, you’re not going to win the lottery or inherit money between now and then. I know you’re in a hard situation right now and I’d like to help you as much as I can and get you back on your feet with a some money in your pocket to start over. Regardless of whether I buy it or the bank takes it you will not have a house X days from now. If you allow me to buy your house it will keep a foreclosure off your record and put $15k in your pocket. If you let the bank take it you won’t have $15k and you’ll have a huge blemish on your credit report. We can both win here if you allow me to purchase your home.

I’ve tried telling him that. But, he is stuck on the fact that just 2 years ago they spent about $20k renovating the place. And now he refuses to accept that he’s going to lose money. For a quick sale, the house is worth about $290k. He had it listed for 3 months @ $360k…INSANE!

Now he wants me to give him $280k, again…INSANE!

My only real option at this point is to contact his bank if he decides to just go into foreclosure. He said he would work with me if his family member doesn’t reply in the next 2 days, but still… I need a direct route in case laziness/denial gets the best of him.

Anyone know how I can contact his bank directly?

Do you have any idea who his current lender is?

Usually in your situation, after the auction, the bank markets the property through a Real Estate Agent. You might want to contact the loss mitigation dept now or after the auction.

I have seen that happen before. It is tough to work with people like that when their life is being turned upside down.

Rich gave you some great advice. Be as blunt as possible and hopefully they will come around if not you did the best you could, move on and find another deal. Just make sure you don’t get sucked into the deal and pay the 280K.

The same thing happens to people in the stock market. They hold on to a losing position too long because they think that eventually something will turn around.

Mdhaas, I don’t know right now who the lender is, but I will try to find out.

Rgchamb, I would like to step in before the house even gets to the auction. Basically, on the foreclosure date, I want to contact the bank and tell them that I’ll give them the full mortgage amount so we can avoid any further foreclosure process… is that possible?

Thank you all for the replies thus far.

What part of NJ are you in? How do you find these properties? I assume you found this one at the court house?

I also would be interested in knowing how you found this guy, if you wouldn’t mind sharing. I hope he comes to his senses.

Well, he had his house listed already for 3 months. I lucked out finding him, because if you ask me… the real estate agent is the one who really should’ve handled this instead of pricing the house $60k above it’s market value and not paying attention to the homeowner’s needs and letting the listing expire.

I found him through a mutual acquaintance. A coworker(my 9-5 job) of mine had a conversation with this person and his situation and told the him to contact me because I’m involved with real estate.

I really hope I don’t lose this deal, but he didn’t return my call from this evening. Even if he gets the money in time, he more than likely won’t be able to stop the foreclosure process which is due in a few days, and he also won’t be able to make further payments.

I’m still very new in this whole business and I have a lot to learn. But it amazes me to find out that homeowners actually get to this point of desperation without acting beforehand and doing everything possible to avoid foreclosure. I didn’t think it exists, but apparantely there’s a whole niche of people who allow themselves to fall into this hole.

Just a small, but important point - real estate agents do not set prices, sellers do. If an agent sets a price and it is too high, he/she is open to a lawsuit from the seller because the property didn’t sell. If an agent sets the price too low, he/she is open to a lawsuit because the property sold for too little.

An experienced agent will attempt to guide a seller to the correct price but will not set it. Listing agreements are time sensitive contracts - they have a starting and ending date. If a property is priced incorrectly, it probably will not sell during the contract period.

You might try going to the courthouse and looking up the deed of trust. The lender should be on there.

depending on the state, it could be too late.

The process (the way I understand it) requires the bank to auction the house in order to take title so you can’t pay them until they own it. The bank name should be on the Deed of Trust and on the foreclosure notices (posted at the courthouse). You may be able to buy the house at the foreclosure sale.

You know, I’m in the same situation. My bank told me about a home that’s going to be foreclosed in March unless the owner comes up with the cash, but I know that won’t be the case. What are the next steps in persuing this lead?

You can’t step in before the auction without permission from the seller. If they won’t work with you, then go to the auction and get the house.
Be prepared that this seller may do a lot of damage to the house if they lose it at auction and are forced out, and you won’t know until after you close.

Manna from Heaven, the money is always on the way.
no, not really, Stop talking to the owner, you WILL not convince them, EVER.
I have dealt with this before, they never change their minds.

Wait till the day before the auction, go to them and offer them the auction price only, no profit. Tell them ( when they say they going to save the property) that you will see them at auction. Contact the trustee (attorney) and find out what the opening bid is, buy at auction, then evict the owners immediately, it will not be as easy as it seems.

good luck with these dummies.

they never, ever learn

good luck

Also, the bank has already decided to foreclose, the only thing that will stop that now is Cash. They just want to get paid. The owner will not likely sell to you. The attorney is the one you will have to deal with. The bank, after the sale, will most likely do nothing for a couple months, so the deadbeats stay for free. also keep in mind the homeowner has had about 6 months of free use of the house by not making payments. The bank just wants to get paid, they do not want the house back.

Be patient. :banghead

Find out who the bank is and offer to do a short sale if you have funds available. You could purchase the home at a nice discount and probably better than anything you will get with this guy. I wouldnt wait i would see right away what they would possibly do.

So what happened?