Not So Preforeclosure Getaway

Foreclosures, Short Sales, Tax Foreclosures
1

Hi:

I stumbled across this motivated seller. Motivated because they had one day before their property was due to be auctioned off. I left my card on the front door and lord and behold they called me back.

Turned out they owed the bank $5500. I gave them several options, one being let me write a contract on the property today and I would take care of the bank and lawyers tomorrow (Scenario presenting no worries for sellers).

They told me that they had the money to pay and they planned to pay first thing in the morning via wire transfer. And that after they squared that away they would call me to sell. I agreed.

Turns out they said they made the payment directly to the bank instead of the attorney’s office representing the bank (Not sure how true this is).

Anyway, the property ended up getting auctioned off and the investor that bought it is already knocking their door down (as well he should be).

I’ve bought a property at auction before and I’m pretty familiar with the long process of waiting to close the deal. Also, they have to advertise the sell in case there is anyone that wants to contest it (i.e. lien holder, etc…). My question is: Is there any way for the homeowners to retain there property at this point?

Thanks in Advance
dlmcgill

2

It might depend on the state, but I understand owners have a “right of redemption” period after a foreclosure sale. Don’t know all the details but I believe if they can pay off the bank (probably at the auction sale price) they can keep the property. It’s something they should at least ask their bank about.

3

Thanks for the response tcwood. I will check into that for the state of Maryland. I’ll let you know how it turns out.

dlmcgill