Buyers agent can provide you procedures and steps

a) You need lender approval submit a sales offer
b) More than likely home is a short sale
c) Buyer agent can structure sales offer hopefully win/ win for all parties, buyer / seller/ lender
d) If bank can stop a foreclosure usually up to day before auction if right sales offer works

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Lynn911

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Bill's right.

Before it goes to auction, you can buy the home from the owner--the guy or gal who's about to lose his/her home. It may or may not be listed as a short sale. Even if it isn't listed, you can make an offer. If it's close to foreclosure, there won't be time for a short sale.

But sometimes houses with equity slide into foreclosure--perhaps through medical bills or divorce. So let's say someone bought a house 15 years ago for $200,000, now owes $120,000, and It's now worth $500,000. The owner has missed 6 payments of $2,000. So, adding up the arrearages, penalties, etc., the owner may owe the bank $20,000. You could offer the owner, say, $350,000. The owner would use the $350,000 to pay off the $140,000 owed ($120,000 remaining plus $20,000 in arrearages and penalties), keeping $190,000. You, meanwhile, would have bought a $500,000 home for $350,000.

Once it goes to auction, either someone buys it or the bank does. In today's economy, it's usually the bank. At that point--after the auction and after the bank lists the property for sale--you make an offer through a real estate agent to buy the property.

Hope that helps.

Before the house goes into foreclosure, it may be listed with a brokerage firm. If so, contact the listing agent. Find out what is going on and inquire about a short sale. If it is not listed with an agent, contact the homeowners directly. Let them know that you are interested in buying the house. I suggest you hook up with an agent who is knowledgeable about distressed properties. That agent can take you and the seller through the process. Key is acting fast. Link will help you find a qualified agent.

You can't......primarily because the bank does not have ownership of the property and cannot enter into a purchase agreement until they have clear title of the property.