Bank Refers Owner To Atty. How Long Do I Have?
I am trying to purchase a house (getting ready to put down earnest money) that is 4 months in arrears. The bank will not talk to the owner anymore and transfers him to the attorney. I do not see the house listed in the paper yet. Does that mean I've got at least 1.5 months to purchase the property (new loan from my bank) or take his loan "Subject To" and catch up the arrears?
I would hate to put down earnest money and begin the process of purchasing and repairing the house only to find it sold at the courthouse steps or the like to another party.
Please help!
JohnCl
You still have some time...Make sure you get something in writing like a "borrower certification and authorization" that states that you can speak on the behalf of the owner before you talk to the attorney.
When you talk to the attorney, ask for a quote on what they need to become current and a payoff. The attorney will continue to go through the motions as you get your paperwork together. The attorney will be able to tell you their approximate date of sale. ( usually within 1-2 months) You need to act fast, the attorney fees are very expensive and are added to the owner's payoff. GOOD LUCK.......
This is only one of many opinions.
It might not be published in the paper that you are looking at...check with your recorder's office and see if a lis pendens, notice of default or notice of sale has been recorded yet. I wouldn't bet on the sale being a certain time away, based upon seeing nothing. That is faulty logic.
If the house has moved into bankruptcy, you've got another issue entirely...do you have a good relationship with the seller, so you can find out what his motivations are regarding BK? If you put down earnest money, it should only be $10 and no more.
Also, you should not repair any house that you don't have the deed for...or a very tight option to purchase.
I don't know about GA, but here in FL, I always get a POA, and a Warranty Deed to Trustee, that I file right away. It won't hurt you if the auction goes through, because the auction clears title. But, it will keep it under your control to either buy sub.2 or outright. Personally, I try to get as many sub. 2 as I can. It is the fastest, stops the foreclosure, and then I can decide how I want to proceed with fixup money, etc.