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Neighbor Facing Foreclosure |
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My parents' neighbor is selling his house, but I found out through the internet and the Queens County Clerk that CitiMortgage has filed a lis pendens against him, beginning foreclosure proceedings. When I was seeing the property and asking about repairs, he told me he has absolutely no money and he also recently filed for divorce, but right now we cannot afford his asking price, but by the time the property goes on the auction block we will be able to bid on it as there are two salary raises coming for the household in the next three months. Do you think I should approach him and see if he is willing to substantially lower his asking price or just wait it out and try to contact CitiMortgage later, or wait for auction and risk someone else getting the property in the mean time or bidding higher at auction time? I am a first time buyer with two small boys in a cramped apartment so I need to be smart about this. Please offer any advice you can. Thank you so much! |
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You don't mention one important factor -- how much is the present mortgage debt? At a foreclosure auction, that's the amount Citi will bid. You'd need to bid more than that and although I don't know the rules in your particular area, you'd probably have to come up with a substantial amount of cash then and there, and -- in my area at least -- the rest of the money within 30 days. Bidding at auction is not a job for amateurs.
Again, depending on the amount of the mortgage debt, your neighbor may not be able to sell for less than he's asking. And depending on how far the foreclosure process has gone, it may not be stoppable now.
Assuming your neighbor is agreeable, you need to find a real estate broker, or better yet, a real estate lawyer, to contact the bank, find out just what dollar amounts are involved, and see if the process can be halted while you negotiate a purchase.
Let me know what happens; I'm interested. |
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Edith
Originally published on June 26, 2009 |
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