Pre-auction process

I am trying to contact owners in the pre-auction process, the owners that already have their house scheduled for an auction date. I would like to know the steps once I negotiate an agreement with the owner of the property.

Do I need a certain form so that I can contact and have permission to talk to the lender?

Can I pay off the default amount and then negotiate with the lender to take over the loan? Will they do that if the loan is not assumable?

Will the lender postpone the auction date and give me time to get a new loan?

Are the lenders open to this type of process or not?

Any help would be greatly appreciated.


Once a home is scheduled for auction, lender has decided to get full loan amount or take over the property. This is after 3-4 months of letter and NOD and other notification and no payments made by owner.

In my state, Texas, one trustee told me that only way to stop auction is to bring one of these two:

  1. Fully execuated cotnract with amount of defaults -all back payments and penaties in cashier check. This will postpone and allow you to go do financing.

  2. fully execuated contract with full amount of cashier check made out to lender.

Hoe this helps. There is always an exception and lenders are willing to negotiate with 1-2 months times if the see it will benefit them.

Remember this – bank has apointed a trustee to recover their money. These trustee have no interest but foreclosed and charge their fees to bank. They will almost NEVER got extra mile for you.

Hoe this help.