Can we purchase if the seller goes into foreclosure?

[MarySpin]

What is the name of your state? New Jersey

I posted in another forum about an easement, but my situation is actually two-fold. I am considering purchasing a property in New Jersey. The seller's financial situation is dire and from what I understand the seller is one step ahead of foreclosure. The seller was 90 days on the mortgage and the seller's family member stepped in to pay in full what was due.

My mortgage broker sounded very concerned. Obviously, the seller is looking to work quickly due to their financial situation, but what happens if they go into foreclosure prior to our closing? Will I still be able to purchase the property?

Thanks again!

 

[seniorjudge]

Will I still be able to purchase the property?

Yes...be on the courthouse steps at the foreclosure sale with your money in hand.

 

[MarySpin]

...or mortgage commitment?

I imagine we could lose out to other buyers at that point since sheriff sales are public notice?

 

[seniorjudge]

Most foreclosure sales require cash or certified funds. Check out what the custom (or law) is in your area. Mortgage commitments would seem to me to be pretty worthless at an auction.

Also, yes, you could be bidding against other people. It is, after all, an auction.

You would be well-advised to go to a title company in the county where the real estate is located and get a title report (not title insurance). These reports are called different things in different parts of the country: ownership and encumbrance reports, foreclosure reports, letter reports, etc.

All the report does is show the current owner and any liens on the real estate.

 

[MarySpin]

Yes. In our state I believe our attorney refers to it as a "title search". Same thing?

Thanks for the information. Since I don't have the cash burning a hole in my pocket we will need to work fast