How was I able to put an offer on a foreclosed home?

Legal Advice Forum
1

I found a house listed for sale on MLS, but turns out it was already foreclosed. My mom, a real estate agent, helped me put an offer in, and I even paid for inspections. How was this allowed? The auction happened right before I signed the contract. Anyone know how this works?

2

Wow, that sounds frustrating. It’s all about timing in these situations. Sometimes auctions get delayed or cancelled if there’s an interested buyer.

3

Rex said:
Wow, that sounds frustrating. It’s all about timing in these situations. Sometimes auctions get delayed or cancelled if there’s an interested buyer.

Yeah, I guess timing is everything. Just wish I had known sooner.

4

I’ve seen similar cases. The bank can sometimes let the owner try to sell before the auction, but if the bank was the highest bidder, you might be out of luck.

5

Keegan said:
I’ve seen similar cases. The bank can sometimes let the owner try to sell before the auction, but if the bank was the highest bidder, you might be out of luck.

That’s what I’m worried about. I need to figure out my next steps.

6

In some states, the former owner has a right of redemption. They might pay off the debt and reclaim the property. Have you checked on that?

7

Darby said:
In some states, the former owner has a right of redemption. They might pay off the debt and reclaim the property. Have you checked on that?

I haven’t looked into that yet, but it sounds worth checking out.

8

If you do end up needing to buy directly from the bank, make sure you get a waiver of the right of redemption. That could simplify things for you.

9

Marlon said:
If you do end up needing to buy directly from the bank, make sure you get a waiver of the right of redemption. That could simplify things for you.

Thanks for the advice! I’ll keep that in mind when I talk to them.

10

This happens more often than you’d think with short sales. Just make sure your agent is on top of communication with the mortgage company.

11

Avi said:
This happens more often than you’d think with short sales. Just make sure your agent is on top of communication with the mortgage company.

For sure. I’ll definitely stress that to my mom. Thanks for the tips!