if a home is going to auction nothing can be done you cant make an offer etc... until the auction?

Asked by Tony, 02557 Wed Jul 14, 2010

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7
Peter Fyler, Agent, West Tisbury, MA
Thu Jul 15, 2010
Not true! The seller can notify the lender that there is a buyer interested in the property who wants to make an offer. The lender would then postpone the auction. The offer will pretty much have to follow the guidelines of a short sale, ie proof of funds, etc. If the offer is for less than the loan amount, the bank will have to approve it, and in most cases, if it is for less the chances of the sale occuring at this point are not good. 70% of short sales never close. Also, buying property at auction is the least desirable option with the most risk to the buyer. You would be better off waiting until the lender returns the property to market as an REO, having cleared the title, any liens and making the property compliant with local zoning laws.
Web Reference:  http://www.SplitRockRE.com
2 votes
Christine Mo…, Agent, Wilbraham, MA
Thu Jul 15, 2010
Peter had a good answer. I had to give him a thumbs up. Make an offer. If there are all sorts of liens and judgements against it may not be a good investment. Make sure you find someone to work with who has lots of experience with short sales.
Good luck.
1 vote
Heidi Zizza, Agent, Framingham, MA
Thu Jul 15, 2010
Do a title search to be sure you are not inheriting any extra liens and then try to contact the bank directly By contacting the loss mitigation departemnt. If that doesn't work call the auction house and tell them you have an offer.
Web Reference:  http://www.mlspin.com
0 votes
Matthew Heis…, Agent, Westborough, MA
Wed Jul 14, 2010
As noted, there are things that can be done, and most banks are happy to have the house off their hands if they are paid in full. But you do need time to negotiate, banks move slowly, and If the bank is looking to do an auction, it's probably because the home is worth less than the loan.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Jul 14, 2010
Tony if you have cash, you can certainly contact the lawyer handling the foreclsoure an dmake an offer to purchase the loan and then you foreclose, there may not be time to complete a short sale if they have already set a foreclsoure date. If you wait until the auction please make sure you conduct a title search to know if there are 2nd mortgages, back taxes or liens that you may be responsible for.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Scott A. Nel…, , 02155
Wed Jul 14, 2010
Well if you were willing to step in and pay all monies owed. The full value of the mortgage outright there may be hope. Otherwise it really depends on each situation individually. Cash will always be king for these situations but a knowledgeable professional team to work with also helps immeasurably.

Hope that helps,
Web Reference:  http://www.MedfordHouse.com
0 votes
Yannis Tsits…, , 01742
Wed Jul 14, 2010
Is this a short sale that is also scheduled to go to auction? Is this an already foreclosed property that the lender schedules to auction? Your above info provided is not clear, at least not to me.
0 votes
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