Expert: Dick Dennis - 3/1/2007

Question
I live in Florida, and in my neighborhood, there is a home which is currently in foreclosure. The homeowner died in September 2006. The lender iniiated foreclosure in January 2007. The homeowner did not have relatives or heirs.

I work with an investor who wants to buy the property directly from the lender before it goes to judicial sale...is this possible? He is, of course, not related to the deceased homeowner.  

Answer
Your friend is going to have to wait, Stella. The lender must adhere to the state's laws regarding a foreclosure. And that means the lender must go the complete routine of having the foreclosure sale and auction. Your friend should keep track of the property's plight. She should attend the foreclosure auction. She should learn the process of attending and bidding at the auction. If she asks the lender what she must do to buy the property, they will tell her just what I am tell you here. The lender just wants to resell that property and they don't care who as long as it is someone who has good credit. But at an auction, they must pay CASH. If no one bids at the auction THEN she may approach the lender to buy it. Then she must go through a different set of requirements because the lender is going to give the foreclosed house to a particular real estate agent to handle the selling of the property.

I do wish you well, Stella.

Dick Dennis