Which is the best way to purchase a property going into foreclosure, short sale, or auction?
Sep 03, 2009 in
Financial and Loan Tips
sm177y
I have been notified that the house I am living in (Idaho, US) is going into foreclosure, and would like to see about buying it, but have never purchased property before. Any tips and pointers would be greatly appreciated.
I have been notified that the house I am living in (Idaho, US) is going into foreclosure, and would like to see about buying it, but have never purchased property before. Any tips and pointers would be greatly appreciated.
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2 comments
pbroni on September 4, 2009 at 2:18 pm
If you buy it through a short sale, you won’t have to move, so that’s a plus.
You would need to get the property under contract, then get the permission of the borrower to contact the lender and discuss it.
Another option would be to find out how much money it would take to bring the loan current. You could then have the owner deed the house to you and then pay this amount to stop the foreclosure. Then you’d make the payments going forward.
This is a little risk in that transferring the house to you triggers the “due on sale” clause in most mortgages, but it’s unlikely that the lender will foreclose if payments are being made on time.
Eventually you’d refinance the house and get a loan in your name. The beauty is that it would be a refinance, not a purchase, since you already would own the house.
This is not for rookies. Get an experienced real estate investor or lawyer to help you.
pm1961 on September 5, 2009 at 12:14 am
if u’re buying a property in foreclosure expect to put down at least 30%. They don’t have time to wait for you to be approved for a loan or you can get a quick fast hard money loan at