Bank Foreclosure
I found your site when looking for information on short sales... thank God... Heres my question>>> I'm looking at buying a property that's in foreclosure and listed with a realtor. My first thought was to buy it short sale, but because of the legal fees and real estate commission, I have decided to approach the seller to allow me to assume the mortgage and pay the back taxes while trying to get the bank to wave the legal fees. I would be saving about $45,000 in commission and legal fees. Once this is accomplished, I would refinance the property and let the seller walk away with something in his pocket.Is this legally possible or am I way off base? The seller has also told me that someone bought the tax lein on the property...how does this impact what I'm trying to accomplish? HELP!!! 
If you assume their mortgage, then you will have to pay their back property taxes, their back mortgager payments, get a reinstatment letter from the bank (also pay the reinstatement fee), realtor's commission, etc.
Unless this is a really good deal, then you will have to pay a lot up front to acquire the property before it goes to auction. Then to give the seller money back? How much were you planning on giving them? Depending on the amount you dished out just to bring the mortgage current, then you most likely will not be able to give them cash if you want to make a profit. Unless you are going to give them a piece of your profits...
I would suggest you start doing some calculations before getting into this deal.
Tanya
Hi Gmautt,
If you could save $45,000 in just legal fees and RE commission, either the property is very, very expensive, or there is something wrong with those numbers.
Let us know more details about the owners situation, and the numbers associated with the deal.
If it is in the banks best interest (and you illustrate this to them), then they will short sell it to you for x amount of dollars, no matter how much the legal fees are. You may be able to visit with the realtor to significantly reduce their fee as well. But regardless if you assume the mortgage or short sale it, someone will be paying the back taxes. If you present the short package well to the bank, you might even request that they pay all or some of the back taxes on top of the short sale discount. There would be a lot of variables in that, but it is something to consider! And if an investors bought the deliquent taxes already, you would just need to call the tax accessors office (or treasurer) to find out the total amount with the interest included.
Best of Success!
BAMZ