How do I follow a house through the foreclosure process?

by oliver on September 30, 2010

Question:

How do I follow a house through the foreclosure process?

I have a seller who will not sign a short sale offer but instead will declare bankruptcy. How do I follow the house through the foreclosure process ? Am I able to purchase this house by the bank before it goes back on the market ? Is there an auction by the lender? How do I find out ? Thank you for any help.

Answer:

This will actually depend on how long you will wait for this house or property. If the owner is planning to file for a bankruptcy protection in order to remove his financial burden, being able to purchase the house will take a long time to be processed. If he is able to get help in the bankruptcy, the house will surely not be open in the market for sale. Most likely, even if the homeowner is not successful with his application for bankruptcy, he will definitely drag the process for years.

In order for you to keep up on the foreclosure process of that house, you might want to go to the county recorder’s office at least once or twice each month. Since the foreclosure process is considered public, you can check their local newspaper for information. Usually, if the property continues to the foreclosure sale or auction, you can have the chance to acquire it. Of course, you will be bidding with other people who are interested with the property so might as well be ready financially. The lender usually sets a minimum amount of bid which includes the foreclosure fees in addition to the mortgage loan balance and other fees. Sometimes, the house is not sold in the auction because the bid was too low. If you make an offer immediately after the auction and hand a check for down payment, you may have a good chance of getting the house. If the lender does not agree, you may have to wait for the next auction schedule.

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