Sub2 to help save foreclosure or standard loan?

Foreclosures, Short Sales, Tax Foreclosures
1

I took a look at a couple of properties last night with my realtor.
I will be making offers on both but the following one stood out in particular.

The property has an ARV of $170K.
It needs approximately $18K in rehab.
The property is listed but is slated to be sold on the auction steps on January 20th.
I gathered from my meeting with the gentleman that showed us around the place (must have been a boyfriend) that they have not had much in the way of interest in the property. The property is not a short sale candidate as approximately 90K is owed on two loans.

My thinking on this.

  1. I could offer to take over the home Sub2, making sure that the realtors and offices are paid (my realtor was entirely fine with this), that the back payments and any attorney costs are taken care of, and give the homeowner a small sum of money for the move and help the owner to avoid foreclosure.

  2. I could purchase the home but would have to get a loan. The foreclosure date of September 20th would have to be extended.

Any recommendations? If I went with the Sub2 choice, how would I guarantee that the foreclosure would be cancelled by the bank(s).
Would a bank typically stop a foreclosure if we’ve now hit 7 days before it is scheduled to be sold?

2

You need to get authorization to talk to the lender and find out. Every lender is different, so you don’t know until you ask. Find out…

  1. Is it too late to bring the loans current and stop foreclosure? or

  2. Will they postpone the auction with an accepted contract?

3

If you bring good funds to the law office handling the foreclosure, you should get a signed form indicating that the sale has been cancelled. Having said that, things can always slip through. My guess is that it’s very rare for the sale to go on by accident, but I did have one case where no one told the field services company that I’d brough the loan current, and three days after the scheduled auction someone came out to the house and changed the locks–right after I had just paid a locksmith to do the same thing.

Seven days is plenty of time. I’ve brought a loan current the day before the auction.

Get the authorization to talk with the lender and find out. As mentioned, it’s possible to get it stalled with a good contract, but nothing is as sure as bringing the loan current.