Is Sub2 Possible Before House Is Auctioned?
Greetings,
Is it possible to start a Sub2 deal on a property that is in foreclosure and about to be auctioned off within a week? The house needs a little bit of work and the owner owes about 38k on it from a refi 40k. I guess what im asking is if there a point of no return (i.e. house is scheduled for auction all deals are off).
Thanks in advanced.
Normally at this point you are going to have to come up with all cash to pay off the balance in full.
This may or may not be a deal depending on which lien this is foreclosing and what the property is worth.
I have heard that under some states' laws that you are able to reinstate the loan by paying all of the back payments, interest, and attorney fees. I'm not sure what states this is but you are going to have to come up with a chunk of money regardless.
Thanks myfrogger for your timely response. This property btw is in Florida and the bank is Ocwen. I figure there would be a great sum of cash to bring this loan current (if it is not too late). The property is worth more than what is owed on it and is(was) in an appreciating market. the downside is this area has been hit twice by 2 major hurricanes(frances and jeane). my second option is to go to the auction and make a bid on it but I am still researching that option.
Thanks!
Quote:
On 2004-10-26 01:46, myfrogger wrote:
Normally at this point you are going to have to come up with all cash to pay off the balance in full.
This may or may not be a deal depending on which lien this is foreclosing and what the property is worth.
I have heard that under some states' laws that you are able to reinstate the loan by paying all of the back payments, interest, and attorney fees. I'm not sure what states this is but you are going to have to come up with a chunk of money regardless.
If the bank feels there is sufficient equity in the property, they will bid at the auction for exactly what they owe. They are not allowed to bid above that price.
At this point, if this number makes a good buy, I would seek to buy the property from the owner by giving her as little money as possible.