Results 1 to 6 of 6
  1. #1
    Join Date
    Jul 2006
    Posts
    2

    Default Buying at a sheriff sale before auction from homeowners

    We have intrest in a sherrif sale home due to go to auction in 3-4 weeks.. We have actually talked to the homeowners who still currently live in the house.. They told us, and we have confirmed that they bought the house in 2003 for $165,000. They now owe 145,000. on that loan.. We have offered the current homeowners 150k *cash* for their home. . (paying off their loan, and giving 5k for their pocket). Is this possible for us to be able to buy their home from them before it goes to sherrif sale? And is this even a smart thing to do? (would it be better to just wait our luck out at the auction?)Will their credit be better if they sell their home to us before it is sold at the sherrif sale? If it is a good idea to try to buy it before it goes to auction, what steps should we take to buy it? Providing the current home owners accept our offer.(and if they would accept, is that a smart move on their part?) We would like to help them out as much as possible.. Would it be better for them to just let it go to sherrif sale, or to let us buy it from them first.? (They are not interested in trying to keep the house.) We know from experience that at these sherrif sales, the sale amount rarely goes above the bank owed price. (in this case 145k) (that is why we offered to pay their loan off and give them a little extra, they probably wouldn't get any extra money off the sherrif sale.) If someone has some knowledge on this please let us know!!!
    ~Ohio~

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    74,863

    Default Re: Buying at a sheriff sale before auction from homeowners

    Be careful about buying directly from the owner, rather than working through their bank - the may owe more than $5,000 in late fees and penalties, should they try to keep the property such that they can transfer it to you.

    Waiting for a sheriff's sale can work pretty well in a lot of states, although if there is significant equity in the house you may find more than just the lender bidding at the sale. But in states which have a lengthy redemption period, the buyer at a sheriff's sale may either have to risk losing the benefit of improvements made to the property if it is redeemed, or waiting until the redemption period expires before making any significant investment in the property.

  3. #3
    Join Date
    Jun 2006
    Location
    Practicing in Los Angeles, California
    Posts
    411

    Default Re: Buying at a sheriff sale before auction from homeowners

    Quote Quoting Mr. Knowitall
    Be careful about buying directly from the owner, rather than working through their bank - the may owe more than $5,000 in late fees and penalties, should they try to keep the property such that they can transfer it to you.

    Waiting for a sheriff's sale can work pretty well in a lot of states, although if there is significant equity in the house you may find more than just the lender bidding at the sale. But in states which have a lengthy redemption period, the buyer at a sheriff's sale may either have to risk losing the benefit of improvements made to the property if it is redeemed, or waiting until the redemption period expires before making any significant investment in the property.

    My response:

    Our writer couldn't buy from the homeowner anyway. The homeowner is in foreclosure, the Deed of Trust has been cancelled, and cannot convey title to our writer. In short, the current homeowner is merely a "tenant at sufferance" of the lending institution. At this point, the homeowner is beyond the redemption period.

    Therefore, our writer has no choice but to wait for the auction.

    IAAL

  4. #4
    Join Date
    Jul 2006
    Posts
    2

    Default Re: Buying at a sheriff sale before auction from homeowners

    Thank you for your replies! I really apprieate it!!
    Mr Knowitall~ **How would we go about trying to go through their bank..?** Would we just contact their bank, and say "hey! I wanna buy a house from from "such in such" before you completely forclose on it?" lol ( I really don't know! So please tell me!!)
    Their lawyer told them that the can sell their home to us.. The total amount they owe is $146,200.. (that is with everything included.. We did look that up at the court house.) Our realtor told us that we could buy it before the auction, but the lender would want to have it be a quit deal. we would have to have cash and be ready to close on it very quickly.. Which we are..

    You are right about it may go above what the lender is owed.. But from experience at our sherrif sales it probably will not go that much.. It is a nice house, but not that nice.. = ) Even if an investor wanted it, he wouldn't make much off it.. But there may be somone like ourselves there who would like to buy it also, and ya know how auctions are, "buy now, think it over later!!" We have a set price in our heads, and will NOT go over it... But other people can't stand to lose..

    IAAL~ Would it make a difference that they have a lawyer on their case? He said that there is still a little time to make a deal.. But what you say about the deed of trust being canceled sounds like it may have some substance also... Maybe here in Ohio things may be different, or maybe they have dumb lawyer who isn't the greatest.. = ) lol..
    We just wanted to make this transaction swift and easy.. For both us and the home owners. We are willing to wait till the sherrif sale, but if they can or will sell their home to us, we will try that route, just incase..
    Thanks!!
    Sheila

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    74,863

    Default Re: Buying at a sheriff sale before auction from homeowners

    Laws do vary by state. I agree with IAAL that the foreclosure is complete; I'm speaking from a practical standpoint, that the bank may nonetheless permit the borrower to pay off the loan along with certain fees and penalties in order to keep the property. You would of course want any funds you pay to remain in escrow until you are certain that the seller can deliver a clear title.

  6. #6
    Join Date
    Aug 2006
    Location
    Southern Cali
    Posts
    6

    Default Re: Buying at a sheriff sale before auction from homeowners

    I helped an investor buy a foreclosure here in LA, CA. The buyer called the old lender and negotiated for 2 -4 more weeks time so that we could close the loan. Most banks don't want to pay the fees associated with a sheriff sale. The old lender may want to see a bank/lender approval.

    1. Sponsored Links
       

Similar Threads

  1. Liens: Lien Holder Not Informed of Sheriff's Auction of Vehicle
    By Keiba1 in forum Vehicle Registration and Title
    Replies: 1
    Last Post: 08-26-2011, 11:04 AM
  2. Foreclosure: Finding Out the Bid Price After a Sheriff's Auction
    By Michigan-Brian in forum Real Estate Finance
    Replies: 11
    Last Post: 09-21-2010, 09:29 AM
  3. Foreclosure: Buying a Home Before Sheriff's Sale
    By beth1111 in forum Real Estate Finance
    Replies: 1
    Last Post: 09-25-2009, 10:18 AM
  4. Foreclosure: Sheriff's Auction of a Foreclosed Home
    By zap in forum Real Estate Finance
    Replies: 3
    Last Post: 07-27-2007, 02:07 PM
  5. Foreclosure: What happens after a sheriff's auction?
    By craze4qlts in forum Real Estate Finance
    Replies: 1
    Last Post: 03-24-2006, 06:31 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Real Estate Forms
Real estate forms and contracts, state specific, immediate download.




Untitled Document