Zillow Advice RSS: Question-Discussion-Guide,Local Topics,ID http://www.zillow.com/advice/ID/local-topics/question-discussion-guide/mortgage/?s=0 Zillow Advice search results | Zillow Real Estate I need to know the rules and process of buying a foreclosed home that is set for auction http://www.zillow.com/advice-thread/I-need-to-know-the-rules-and-process-of-buying-a-foreclosed-home-that-is-set-for-auction/527924/ This first rule is (unfortunately) that the bank with the underlying mortgage makes up their own rules. &nbsp;Therefore, what happens on each situation is different!<br/><br/>Contrary to the previous reply, they do not have to be all cash offers, but they typically will not accept offers that are contingent on selling another home.<br/><br/>Some banks require you to get "pre-approved" with them before you even submit an offer even though you can ultimately choose your own lender if you get a mortgage. &nbsp;Another bank requires you to provide them with your birthday, current address and first few digits of your social security number (which I personally believe they use to do a "soft pull" on your credit report which I am pretty sure is not legal without your written permission.<br/><br/>I have been successful in getting auction dates postponed since the banks really would rather not have the foreclosure occur unless it is to their advantage.<br/><br/>It is critical to have your agent/broker do some research on the property so you can figure out which strategy would work best on the specific home you are interested. &nbsp;Sometime, if there are multiple loans on the property, the bank with the first deed of trust may prefer to actually foreclose since the second (and potentially additional liens) can be wiped out leaving them in a profitable position to resell after foreclosure!<br/><br/>I am authorized to teach a class for the National Association of Realtors called the Short Sale and Foreclosure Resource certification (SFR) which teaches Realtors the nuances of this niche market so trying to explain them in a single post instead of an eight hour class is impossible.<br/><br/>The best advice I can offer is team up with people that understand the pros and cons of buying these types of properties. &nbsp;Typically they are best suited for cash investor buyers but I have closed many of them for families as well.<br/><br/>Hope this helps!<br/>Jim Paulson - Owner / Broker - Progressive Realty Corporation<br/>[Content removed by Zillow Moderator. Please see our&nbsp;<a href="http://www.zillow.com/howto/GoodNeighborPolicy.htm">Good Neighbor Policy</a>]<br \><br \>0 replies Mon, 10 Feb 2014 21:46:00 GMT http://www.zillow.com/advice-thread/I-need-to-know-the-rules-and-process-of-buying-a-foreclosed-home-that-is-set-for-auction/527924/ 2014-02-10T21:46:00Z What if the lender on a foreclosed home is in bankruptcy, Namely Fremont investment and loan? http://www.zillow.com/advice-thread/What-if-the-lender-on-a-foreclosed-home-is-in-bankruptcy-Namely-Fremont-investment-and-loan/271723/ From the info you submitted, it appears that the Lender's assets are being supervised both by&nbsp;a Bankruptcy Court and the FSLIC.&nbsp; At this point, the <a href="http://www.zillow.com/directory/lenders/">Lender</a> may no longer own the <a href="http://www.zillow.com/mortgage/">mortgage</a> on the home - you don't know.&nbsp; The current owner will have someone at the <a href="http://www.zillow.com/homes/for_sale/fore_lt/">foreclosure</a> sale to bid on the property.&nbsp; From the info you&nbsp;submitted, it appears that a call to the Listing Agent (Realtor) to find out what he/she knows.&nbsp; It does not appear promising for you....<br \><br \>0 replies Tue, 25 Aug 2009 15:09:00 GMT http://www.zillow.com/advice-thread/What-if-the-lender-on-a-foreclosed-home-is-in-bankruptcy-Namely-Fremont-investment-and-loan/271723/ 2009-08-25T15:09:00Z