If my sister's house goes into foreclosure, at what point could I make an offer to the bank to buy it?
Question:
I don't want to give her the money to make her mortgage payments because she got into this mess through her own stupidity and not giving her husband a swift kick out the door when he quit his job a couple of days after she got hurt and hasn't been able to work for a month and could be down another couple of months. But I don't want her to lose her house because of her lazy bum husband. She has worked really hard these years, just didn't make any backup plans. I can't afford to make her mortgage payments, she has a ***-awful intrest rate because she had and still has such a crappy credit history. But my hubby and I have a great credit history and could easily get half her intrest rate.
Also, she has a house on one lot and then a second lot. Would a bank be willing to sell just the lot with the house on, that way I wouldn't have to take on quite as much debt?
Answer:
You would have to negotiate the sale of the house with your sister, for now. Since she's still the owner of the property, she can accept or reject purchase offers.
Once the house goes into foreclosure and is sold at sheriff sale, then you could talk with the new owner (usually the bank) about purchasing the house. But that couldn't happen until your sister was taken off the title and there was a new owner.
So for now, you might want to work with your sister to sell the house to you. The foreclosure process will eat up a lot of the equity, as interest, late fees, and court costs are all added to the total payoff. This means that you might have to purchase the house for $10,000 more than what you could get it for now, just due to fees.
In terms of the lot, if there are two different parcels, then the bank may be willing just to sell the one parcel that the house is located on. If it's considered one lot, though, the only way to purchase the smaller lot would be to have the property divided. A title company, surveyor, or the county/city would be able to help you more with that. But the owner would have to agree to it, of course.
Make sure that, if you end up purchasing the house for your sister to live in, you have a lease contract with her and her husband. That way, if they make any more bad decisions and can not afford the payments to you, then you can have them removed and sell the property. It's not a pleasant thought, but you don't want to ruin your own credit down the line if your sister can not afford the house again.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
The bank will be able to sell after it has gone through the foreclosure process. After this there are alot of costs added into the loan. They are going to sell it for the amount of the principal balance, legal fees, interest, etc. If you are thinking of buying it buy it now before it goes any higher. Have your sister sell it to you for what she owes on it now. But if her husband is on title he will have to agree to sell it to you as well.
More Related Questions & Answers...