Home Buying in Carmichael>Question Details

Zicky, Home Buyer in Carmichael, CA

Can I purchase a bank owned property formerly owned by my son-in-law? My daughter was not married to him at

Asked by Zicky, Carmichael, CA Fri Jun 19, 2009

the time of his foreclosure, her name was never on the loan or title. It has gone through the foreclosure process, auction, and now is bank owned.

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4
Hi Zicky,

It might be worth your while to at least put in a bid, make an offer, if you want to try to retain the property in your family.
I would suggest that if the property is still showing active on the MLS, then you may want to write the offer this weekend, as banks typically look at all offers on Mondays.
The process is not complicated, but it can be frustrating, especially if more than one offer is made on that property.
It only takes an hour or less to write a contract, depending upon your knowledge or experience in real estate, as the California Residential Purchase Agreement is 8 pages, and there are other disclosures to read and sign as well.
But again, it shouldn't hurt to try.

Good luck, -Jeni.
0 votes Thank Flag Link Fri Jun 19, 2009
I applaud your consideration of the ethics and legality related to this transaction. You do not mention whether you are purchasing it for your daughter and son-in-law to occupy.

While the bank MAY ask if you were a relation to the former owners, I doubt it. There is a stipulation in the purchase of a short sale, that needs demonstration that this is a 'long arm' transaction. That is indeed understandable in that we in the general public are paying for the mess the banks and homeowners are in...But in this case, the foreclosure is complete and I don't believe there is that investigation on a foreclosure. Even if there was, timing is such that you were not a relation at the time of the foreclosure.

Although if I were their neighbors, I wouldn't be so happy to see him back in the property, taking advantage of taxpayers who have eaten the difference in the loss, nor seen their property values go down because of his foreclosure, however justified his circumstances were. As for your purchase you are free to purchase whatever you choose.

No one can fault you for buying a home that you are familiar with, appreciate the value and are credit worthy enough to purchase. Good luck to you!
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Fri Jun 19, 2009
Yes you can, however, the bank may have a clause in there addendum to the contract which all of us realtors have seen. In this addendum it may ask if you are a relative of the previous owner. Since the bank now owns the property and your daughter was not on the loan or title I think that you would be in the clear. Call me if I can be of any other assistance.

Good luck, bank owned properties are priced to move and many are seeing multiple offers.
Web Reference: http://www.jimblaylock.com
0 votes Thank Flag Link Fri Jun 19, 2009
Absolutely! The bank just wants to move the property and you can get great prices on bank owned properties. Good luck.
0 votes Thank Flag Link Fri Jun 19, 2009
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