Buying family property in foreclosure

dwaynet19

LoanSafe Member
Mar 27, 2014
1
0
1
47
So my brother is in foreclosure and received a letter stating his house is to be auctioned off come mid April.
He owes about 170k. The house is worth about 220k. Keep your home CA submitted an offer to get him current with the lender. We are waiting to hear what the lender has to say.
Question, Can I come in and buy the house as an investment property for the 170k owed?
The lender keeps jerking his chain and does not want to negotiate cause theres a lot equity, is there any legal recourse he has?
Does anyone know any real estate lawyers in the Patterson, ca area?
Thanks in advance...
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Welcome to the LS community Dwaynet19.

Why would your brother risk losing his home to foreclosure and the $50K in equity? I would not waste any more time with the Keep Your Home Ca program as it generally only applies to underwater homes. There's really no legal recourse here, virtually all loan modification programs are designed for distressed borrowers with $0 equity and are unable to sell their home to avoid foreclosure.. Act fast and get pre-approved for a mortgage so you can purchase the property before it's sold at auction!

Let us know if we can help, we typically issue pre-approval letters (if you qualify and after the initial prequalification) within 24-48 hours upon receiving your information. This is all you need to get the ball rolling.

Good luck!
 

bankwhipped

LoanSafe Member
Apr 11, 2011
161
8
18
Florida
you can buy the house before foreclosure from your brother for the balance of the loan as a regular sale and purchase, have a title co get the correct payoff amount and if you are willing to pay that the bank can't refuse. This will also keep your brother from having a foreclosure on his record and the equity will be kept in the family instead of the gangster banks.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Exactly bankwhipped, thanks for chiming in! Buy the property before it's sold at auction, loan modifications are extremely difficult to accomplish with equity in the property!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
LovingOcwen,
You're exactly right, this would be considered an non-ARM's length transaction and I know I've run into this situation before and the borrower was unable to get financed because the property would have to be brought out of the foreclosure proceedings before it can be sold to another party. Ex: Borrower would have to pay all the past due, fee's & penalties. Then an non-ARM's length transaction might work but I'm going to do more research on this and let you know.
 
Last edited:

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
The reason we wouldn't be able to finance it while in foreclosure is because it's considered a "Bail Out" which we do not do. It's going to be extremely difficult unless the loan is brought out of foreclosure.
 

LovingOcwen

LoanSafe Member
Nov 16, 2013
283
6
18
St. Albans New York
LovingOcwen,
You're exactly right, this would be considered an ARM's length transaction and I know I've run into this situation before and the borrower was unable to get financed because the property would have to be brought out of the foreclosure proceedings before it can be sold to another party. Ex: Borrower would have to pay all the past due, fee's & penalties. Then an ARM's length transaction might work but I'm going to do more research on this and let you know.
The banks probably the family member would allow the person in foreclosure to stay there anyway.
 

balbowhite

LoanSafe Member
Dec 12, 2013
2
0
1
49
The best option is, you buy your home before foreclosure from brother, and otherwise the bank will be liable to take the mandatory actions.
 
Last edited by a moderator:

carolineallison

LoanSafe Member
Apr 27, 2017
4
1
3
42
Hi dwaynet19,
Yes, it is a good idea to buy a property as an investment to stop foreclosure.

Thanks!!
 
Last edited by a moderator:

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
Once the foreclosure proceedings start which it looks like they have, it's going to be very difficult if not impossible to buy the property for what is currently owed on the property. Going back to my post above with it being a non-ARM's length transaction it would be considered a bailout loan which many institutions if not all will not do. Since this post is a bit older, I am very curious as to what the overall outcome was with this situation.