The Foreclosure Report

Pre-Auction Negotiating

Inman News reports on the protocol for buying foreclosures. "DEAR BOB: A house is about to go to foreclosure auction sale. I am interested in buying it. Can I make a cash offer directly to the foreclosing lender before the property is offered at the public auction? --Cathy T."

"DEAR CATHY: Negotiating with the foreclosing lender before the foreclosure auction is usually a waste of time. Until the auction takes place, the lender has no authority to sell the property to you or anyone else except at the required public auction sale."

"If no bidders show up at the foreclosure auction, then the lender owns the property (subject to any redemption right of the defaulting borrower) and can make a deal with you. That's the time to contact the lender, immediately after the public auction."

posted by Ben Jones @ 2:57 PM