Purchase Property After Foreclosure Aution????
I have practically no knowledge concerning foreclosures. A couple weeks ago a notice in our small town paper caught my eye because we have been looking for a couple years for a larger home and we knew who owned this one at one time. I talked to the present owner and he says they were late with a couple payments and their lawyer is getting it all straightened out. He and his wife have seperated so he thought they would put it up for sale after it gets straightened out. I asked him if they would let us see the home and property for $50.00 so if they put it up for sale we would be more informed about it. He hasn't called me back. So.....if I get it in the auction and they have 75 days to clear it all up or sell it, how would we be able to purchase it if our money is tied up with the auction purchase?? It would be upsetting to find later they had sold it to someone else for less than what we may be willing to pay.
Sorry this is so long and will really appreciate any helpful advice.
Thanks,
Terry
NO AUCTION!!!
Get the house before the auction. You've got to contact this person again. He's probably a bit more motivated by now. His only goal by now should be to save his credit, not make money selling his house. If his credit's already messed up from the divorce and he still thinks he's going to get money out of the property I'd walk.
If he is interested in saving his credit, try and buy the house for the amount of the outstanding mortgage and that's all. If that mortgage is too close to the appraised value, then you need to do a short sale with the bank. (ask if you don't know what that is or how to do that)
As for paying someone to see their house - Don' t do that anymore!!! They should be paying you for taking your time to come out and HELP THEM save themselves. OK?
The house and property are probably worth at least $30,000 over the $81,000 listed in the notice. Part of the reason I offered $ to see the property was to get a chance to make a fair offer to him before the auction. We are not trying to make a profit on this foreclosure. We are trying to find a property we can give TLC and have some space for our "toys", workshop, and room for family get-togethers. We now have a small home,garage and small yard and this foreclosure has about 1/2 acre and about twice the house space and outbuildings. There just aren't enough of this type of homes on the market in this small town.
I am about 10 years from retirement(56 this year) and would like to get something with more space NOW.
Thanks[ Edited by bergvw on Date 07/05/2003 ]