That’s what I’m considering trying unless it’s futile.
The property was foreclosed on in September, but I am now in a very different financial position. My own experience with Freddie Mac is that they simply don’t deal with the former borrower. That’s their policy, period. Even if it’s in everybody’s best interest.
So has anyone successfully done something like this? I’m in Texas, by the way.
Disclaimer: I’m not seeking legal advice, just a reality check.
Not sure if this is the same thing but…
Last year, my cousin and his wife (in Ohio) stopped paying their mortgage and the bank kicked them out. We moved them to a rental house across town. They were tasked with cleaning up the house to sell, for some reason.
Then the bank was all “we don’t want this house” or “we can’t sell this house” (it is in no way a crappy or run-down house, just a typical 60s bungalow) and they offered it back to my cousin and his wife for a price they could afford. I assume they forgave the missed payments too.
I had to help move them back in, just months after they moved out.
So yeah it can happen.
There is something called “right of redemption” by which the former owner can re-buy the house after it’s sold at a foreclosure proceeding (and it’s something that you’d have to be wary of if you ever bought a foreclosed property, as well).
It might be worth a consult with a lawyer to review your loan paperwork and determine whether you have the legal ability to force them to let you buy back the place. I assume you’d have to basically bring the mortgage current in some way, maybe even take out a whole new mortgage (which would be tough with a recent foreclosure on your record).
Good luck!
I know someone who got a third party to buy the house out of foreclosure, under an agreement that the third party would rent the property to the original owner, with a plan for the original owner to buy back the property within 5 years. (It didn’t work out in practice, since the original owner couldn’t even keep up with the rent payments, let alone buy it back, but the theory was sound.)
After a foreclosure sale, the mortgagor (borrower) has a certain time to redeem the property. At the sale, the purchaser (usually the mortgagee because ususally noone else bids) gets a certificate of sale (or purchase, depending upon the state). The deed is not issued until after the time for redemption expires. This is not a “re-buy” because the mortgagor still has the legal title. He has to pay the amount bid at the public sale (or auction, if you like) plus interest at the rate the laws in the state allow.
Sales of foreclosed property are sales after the deed has been issued. You don’t have to be wary because the mortgagee has the title before it will sell it. In fact, it cannot sell until it has the title.