Hi, When you say "forfeiture" do you mean the loan is in default? If so, how long has it been in default? THe closer to the sale date, the less likely it will work. What role are you playing? If it is strictly as a buyer. Have you contacted the owner to find out if the property is listed? If not are they willing to sell the property to you? If they are, have they been in communication with their lender(s) recently about the loan situation? If so, is/are the loan balance(s) higher than the value of the property?
If so, are they willing to take less than they are owed? Who owns the loan(s)? Is it a government entity, private party or commercial bank? Are you working with a (RE) broker? If all of the above questions are answered, and everything is favorable, Than the answer maybe YES.
Keep in mind that the owner is still the owner and the lender is still the lender even though the lender(s) has to approve the loan discount. So....It might go something like this: you make an offer to the seller, the seller accepts the offer and then submits is to their lender(s), their lender decides to allow the seller to seller and take less they are owed and the property can be sold before the auction. In California an attorney is not required to handle this type of transaction. The seller should consider consulting with an attorney and CPA to advise them about the legal and financial consequences. The above is a simplified version of what can happen. There are many other factors that were not discussed above. This type of transaction will have a higher level of success with the right team in place.
Apr 17, 2013