Home, Land, Property Buying and Selling - Public auction....buying house back after foreclosure?

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goldilox123
06-09-08, 07:13 PM
I have a friend (seriously, it's not me) who is going through a foreclosure on his home (in New Hampshire), as a result of a high ARM which got out of control. :( The public auction is set for the end of this month. He is interested in trying to bid on the house himself to "buy back" the house at possibly a lower cost than what it is now.
Does anyone have any advice? Is it a good/bad idea? Wouldn't he need to get pre-approved for another mortgage BEFORE this auction, and usually isn't a deposit required when you get to the auction for a "good faith" deposit?? I'm trying to help him out but not finding much info specific to this online.
Thanks for any suggestions!!!

nap
06-09-08, 07:49 PM
the requirements for purchase at an auction may vary but they are almost always made public before the auction. If there is notice for the auction, there should be details available for it as well.
marksr
06-09-08, 08:28 PM
He may want to consult a lawyer first - even if he buys back his home for less than what he owed - he may be liable for the difference.

Unless mistaken, you need to either have a cash deposit or a mortgage approval at the time of puchace..... with a promise to close within a specfied time.