Post # 1
Currently DH and I live in a townhome in a fabulous neighborhood. We would like to get a single family home someday. Nothing on the market is just right. However, I signed up for zillow today and noticed a home in our neighborhood that is pre-foreclosure. It is being set up for auction. I drive by that house often and it appears people are still living there. I don’t know much about foreclosures, or pre-foreclosures. What I’m reading about it though suggested that interested buyers should approach the homeowner before the house goes up for auction. That seems ballsy. Would you do it? Is that disrespectful or helpful? The article I’m reading says it could benefit the owner by not hurting their credit with an actual foreclosure. But it still seems painful to go through. What would you do?
Post # 2
howtobeawife: Hmm, this is tricky. I would say that if you are working with a realtor already, I would contact them and tell them you are interested in te preforeclosure, and they should guide you with the appropriate steps to take
in our situation, we bought a foreclosure, and after we moved in we talked to our neighbors and were told our house sat empty for 1 1/2 years ( we were told only a few months from all realtors involved). Anyways, the family who lived here before had a unique situation. The father was arrested and sent to jail. Only the fathers name was on the deed, and the bank who took over the house as a foreclosure had to wait until his sentencing before they could take the house. So it might be worth it to check into it now, it can’t hurt, but plan for unforseen detailed legal stuff going on too.
Post # 3
I would contact a realtor and ask them to contact the home owner for you. I think if you offered fair market value that would benefit the homeowner much more than going into foreclosure or being low balled at auction.
Post # 4
I would work with a realtor on that.. I would assume the family/ person being foreclosed on may be emotional and approaching them would be an awkward, possibly volatile situation.
Having a professional do this on your behalf may be best for both parties. My knowledge on this comes from the episode of Its Always Sunny where Frank buys the foreclosed house to flip it and the family won’t leave.. it doesn’t end well.
Post # 5
howtobeawife: I think that this is an excellent opportunity to help someone who spare their credit and the social stigma of foreclosure. These days, getting foreclosed on doesn’t have the same POW it once did (along with bankruptcy), at least in my area…as it became a reality for most families during the economic downturn.
But, it can still help them. It could also prevent them from being sued (while foreclosure can be the end of the transaction, some banks, cities and other institutions may attempt to sue someone over a foreclosure).
The reality is this: they know they’re losing their house and they know that it’s going to be put up for auction. I’m sure it does hurt every time they’re reminded of it and every time someone calls. But, someone purchasing a pre-foreclosure can spare them the drawn-out process of foreclosure (or of going to auction). There’s also a chance that they could make some money…if the price is higher than what they owe, of course.
I agree with getting a realtor to pave the transaction for you.
Post # 6
SpringDaisy5: Bazinga: KC-2722: CookieCreamCakes: Thanks for the great advice, ladies! I will bring it up with DH and see if he is interested enough for us to get a realtor involved.
Post # 7
howtobeawife: Yeah, ask a realtor the specifics. I was foreclosed on (my then hubby lost his job). I would definitely not have wanted someone knocking on my door to rub salt in the wound. I would think it would depend on where it is in the process. If I could’ve sold my house (short sale) I certainly would’ve preferred that and yes, please knock on my door. But if it was past that possibility, leave me alone.
Post # 8
RedHeadKel: Thanks, that’s what I was thinking is that it would be so rude/weird/painful to the owner for someone to approach. I agree it is better left to a realtor to feel it out. Thanks for sharing your experience.