How to Buy Your House Back at a Public Auction
Going into foreclosure is not a good experience for any family to endure. However, it is happening to many families as they try to cope with the economic crisis around the world. A foreclosed house is usually sold at a public auction set by the county. The homeowner is treated the same way as all other bidders.
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Instructions
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1
Find out when the sale of the property will take place on the courthouse steps. Be sure you know what the starting bid will be. This is usually the total owed, which includes attorney fees, interest and the mortgage balance.
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2
Find the cash amount necessary to complete the purchase at the public auction. If there was a second mortgage taken out on the home at the time of the original purchase, the homeowner should understand that it will be included in the bid amount at the time of foreclosure. All of the debts associated with the home will be reported to the credit bureau and will still have to be paid by the homeowner.
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3
Have a friend or family member bid on the home in his name and buy the house back from him if he wins the bid. Make sure you do it legally. Go to a lawyer and have her do the paperwork. Read the fine print and sign the contract to buy the house back.
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If Step 3 fails or you don't use it, buy the house back from the person who wins the bid. Explain your problem and let him know how much having the home back would mean to you. He may be sympathetic to your situation. Be mindful that this person must make a profit in the deal.
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Contact a nonprofit organization in your area or maybe a church if you are a member. Describe your situation and ask for help in buying your home back. You just might get lucky and someone may come to your aid if you are tactful about your request. Be sure to come up with a plan for how you will pay back the nonprofit organization or church.
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Tips & Warnings
Sit down with your family and look at your financial situation to see whether you can afford the payments when you buy back the home. If you can't, then it is time to move on. Rent an apartment until you can manage mortgage payments again.
Don't bid on the house for sentimental reasons, only if it makes sense. If you use desperate measures without having the finances, you will lose in the end.
