When there is a default amount on a foreclosed house, do you pay the ammount and the house is yours?

Question

When there is a default amount on a foreclosed house, do you pay the ammount and the house is yours?

Answer 1

There is a sheriff's auction, and it is the price of the auction.  The lender is there.  Lender will bid the price up to at least cover the pay off amount.  It is not unusual for the lender to be high bidder as a result of this, and to wind up with the house. But, once the loan payoff is reached, the lender stops bidding.  That is how you can get home for less than market price.

Answer 2

You pay the total amount that is owed on the house and then you can own it.  Not the amount that is arrears.

Answer 3

The default amount is usually the amount that is required to bring the loan current. You can buy a house with this amount if the seller agrees to sell their house "subject to" the existing financing remaining intact.

This is a great way to buy a house with very little cash, and no credit. Read more into it.

P.S. If the house is already foreclosed upon, then you cannot buy the house this way. If the house is foreclosed, it will be sold at auction - BY LAW. Everyone has to be allowed equal opportunity to purchase, and thus the auction. However, if it is not sold at auction, you may be able to pick it up outside of auction or straight from the bank for a good deal.