Foreclosure deal slipping. . . - Posted by Shane

Real Estate Investing
1

Posted by IB (NJ) on January 09, 2003 at 13:02:23:

Just looked up the ‘NEW JERSEY FAIR FORECLOSURE ACT’ as referenced by the site: http://www.meyner.com/art_credit_foreclosure.htm

You’re correct. Thanks.

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Foreclosure deal slipping. . . - Posted by Shane

Posted by Shane on January 07, 2003 at 21:38:40:

I have a contract on a foreclosure that is going to auction on the 14th of this month and the bank is giving me the run around. We were trying to cure the loan, but the banks just do not want to deal. Maybe because there is so much equity, like 45K.

My attourny said that I might be able to cut a deal with the bank where I buy the house from them right after they buy it back at the auction. The attournys fees keep adding up making the deal less and less apealing, but still doable.

Any advice would be appreciated. I would hate to loose the deal all together. I wanted to help the people, but also wanted to make that money if you know what I mean.

Thanks,
Shane

3

no,no,no - Posted by Redline

Posted by Redline on January 08, 2003 at 14:30:41:

Forget this after the auction garbage … IB is right. You need to get an attorney who knows how to deal with these situations (for future reference - bad advice IMO).

You need to:

  1. get this place under contract NOW
  2. get payoff/arrears stmt from bank
  3. bring current (in NJ you can just bring it current to avoid f/c)
  4. assume loan
  5. do your thing

Also you may be entitled to a few postponements on the f/c just for the asking. Find out if you are and how to get them, to give you time to put this together.

Right now you’re the only guy in the pool. The day of the auction is when they release the sharks and the whales. You don’t wanna compete with THAT, do you? Get this done before the sale.

RL

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even if you miss the auction - Posted by rm

Posted by rm on January 08, 2003 at 10:08:29:

you might be able to purchase it afterwards.

Check the redemption period for your state.

You’ll have to raise some serious cash, though.

But you should be able to get a good chunk of the equity, giving less to the seller because of the circumstances.

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Re: Foreclosure deal slipping. . . - Posted by IB (NJ)

Posted by IB (NJ) on January 07, 2003 at 22:29:54:

In NJ, the homeowner has the right to cure the foreclosure up to 5 days before the sale.

With that said, has your lawyer sent their lawyer a request for a reinstatement letter. Also, you need to have an authorization letter by the homeowner granting you permission to request this information on their behalf.

In my county you are also entitled to two-2 week postponements. Let the mortgage company know that you will use these AND have the homeowner file bankruptcy if they don’t get you this information.

Has you atty. done a pre f/c before? I don’t like his ‘wait til after the auction’ advice. If there’s a good amount of equity in this, there might be other investors bidding at the auction. The bank may never see this property.

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Re: Foreclosure deal slipping. . . - Posted by Justin

Posted by Justin on January 07, 2003 at 22:28:20:

If you’re working with all cash, you might consider bidding on the property at auction… Who knows, the bank may only bid the amount owed.

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Re: Foreclosure deal slipping. . . - Posted by Redline

Posted by Redline on January 08, 2003 at 14:20:44:

Actually, in NJ isn’t the homeowner entitled to cure right up until the last minute? I thought this was the case.

Thanks,
RL