Buy Your Foreclosed Home Back

By
Real Estate Broker/Owner with Cam Realty and Property Management

Buy Your Foreclosed Home Back

Foreclosed HomesHomeowners who are facing foreclosure and even homeowners who have already lost their homes into foreclosure still hope that somehow they could buy their home back.
Many have fallen into scams that promise homeowners who lost their homes to buy their homes back.

I received a call yesterday from a homeowner who already lost his home into foreclosure, however, still living in the house. His house was foreclosed on over a month ago.
He wanted me to represent his cousin as a Buyer’s Agent to buy the house who would then rent it back to him as he does not want to move out of his house. If you get advice from others on how to buy your foreclosed home back, run the other way!

With REO/Bank Owned homes, the owner(bank) will have the previous homeowners move out of the house before listing it for sale.
The most important is that if your house for “whatever” reason went into foreclosure and now purchased by a family member only to give it back to you, that is screaming “fraud”. I’m not an attorney and can not give legal advice but have enough knowledge to know it is not right.

My advice is to detach yourself from these four walls and start over. It is not worth risking your freedom!

If you or anyone you know is facing foreclosure, you have options! I would love to have the opportunity to meet with you and provide with information on Short Sales. Worst thing you could do is “nothing”. Keep in mind, your bank is still pursuing foreclosure, they have not stopped, you should not either.
You could call me at 407-929-1852 or email at bethatalay@gmail.com, you could visit my website at www.wheretoliveinorlando.com

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Rainer
415,251
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

In this world certainly anything is possible. Most short sales or foreclosures I have seen have buyers sign an addendum that states they are not related to the owner. Mortgage fraud if you sign an addendum that's not accurate.

May 12, 2013 09:00 AM #14
Rainmaker
1,067,017
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Hi Beth -- there's always someone trying to get around the way the system works or is suppose to work.   

May 12, 2013 09:21 AM #15
Rainer
115,663
Bukka Levy
Coldwell Banker Residential Real Estate Petaluma California - Petaluma, CA
REALTOR - San Francisco North Bay
This really is too bad. So, the family can no longer affird the scammy $1M loan they got and are losing their home, and will probably only be able to afford one half the price...which is about what their old home will now sell for. Why not let them buy it? This will put the displaced family back in a home and it will get the bank the money that this house is now realistically worth and what they are now asking for. I think we should have checks and balances in place to prevent and persecute the small percentage of those committing fraud, but there should also be a path for the greater number of people who are being displaced and aren't even clear how they got there.
May 12, 2013 09:37 AM #16
Rainmaker
503,942
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Bill, of course anything is possible and I'm sure if you could think of it, it's been done but as long as laws/policies/procedures say "don't do it" just, don't do it!!

Michael, unfortunately if get caught, consequences are far more greater than keeping four walls..to me, it's not worth the effort.

Bukka, If you try to rationalize it, you would think banks would not care who buys the house as long as they get their money but that's not the case. I agree with you, I'm certain fraud is being committed on a regular basis and some even get caught. I wish there was a system in place to help homeowners who are truly victims of unfortunate circumstances.

May 12, 2013 09:48 AM #17
Rainmaker
153,540
Annette Thor
Connecticut Homes and Commercial Fairfield Cty,CT reinct.com - Westport, CT
Residential & Commercial Real Estate Broker in CT

Hi Beth, I am with you and Bryan on that one, family members should be able to step in. 

May 12, 2013 09:58 AM #18
Ambassador
1,334,060
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - San Jose Probate Agent

Beth, It's a shame that anyone mislead the owners to believe this could happen.  Has it been done - probably ... and they have not been caught ... yet.  It's not worth the risk.  People need to get what their agents tell them in writing. 

May 12, 2013 10:15 AM #19
Ambassador
503,013
Brian Schulman
Coldwell Banker Select Professionals, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

It's too bad that no one in government has the compassion to allow a qualified family member to buy the house before the foreclosed family has to lose their home!  The government sure haven't had a problem encouraging lenders to let marginally qualified borrowers BUY homes.

May 12, 2013 10:29 AM #20
Ambassador
1,586,704
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Beth, that is why so many banks now have those 'Arm's length 'sheets for all to sign and having to put a signature to a page makes people think twice

May 12, 2013 10:41 AM #21
Rainmaker
367,809
MaryKay Shumway, ABR, CRS
Coldwell Banker The Real Estate Group Door County - Sister Bay, WI
Professional Door County WI Property Consultant

The last sheriff sale I attended had a son buying back a home for a mother.  That's one place to do it.  You're right, though...it doesn't have to go that far.

 

May 12, 2013 10:43 AM #22
Rainmaker
503,942
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Annette, If and ever that happens, it will certainly prevent fraud, misleading and taking money from those who already lost a lot.

Kathleen, since, banks would not allow family family members to buy back the homes, it's best to let the chips fall where they may.

Brian, I understand some sort to strategic default and foreclosure in result but there are some who truly suffered due to circumstances beyond their control and deserve to get help..

May 12, 2013 10:45 AM #23
Ambassador
2,435,436
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Beth, wow.  Landing in the slammer trying to "buy back" your house would definitely cut down on housing costs, but sounds like a really bad plan. 

May 12, 2013 10:49 AM #24
Rainmaker
287,905
Lisa Friedman
Lisa Consulting VT - Stowe, VT
25 Years of Real Estate Experience!

I think it should be okay.  If the relative buys the house and is qualified and responsible for the mortgage, who is to say who he can or can't rent it to.  He could possibly even do owner financing to the relative.  I see no problem with that as long as the original owner didn't default on purpose to buy the house back cheaper.

May 12, 2013 12:51 PM #25
Rainmaker
287,905
Lisa Friedman
Lisa Consulting VT - Stowe, VT
25 Years of Real Estate Experience!

P.S. I have to laugh at Comment #24 about housing prices being cheaper in jail :)

May 12, 2013 12:52 PM #26
Rainmaker
503,942
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Patricia, your comment made me laugh!! That is true..fast way to reduce living costs.

Lisa, I don't either, I wish banks would allow relatives to buy foreclosed properties, what difference does it make who's living in the house as long as banks are getting their money.

May 12, 2013 06:16 PM #27
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Beth - I agree with the comment that it could work if the bank gave permission though I don't know how likely that would be.

May 12, 2013 11:52 PM #28
Rainmaker
503,942
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Christine, I haven't seen any bank giving permission YET!! Of course, that's not to say it won't ever happen, very unlikely though!

May 13, 2013 05:25 AM #29
Rainer
189,967
Keith Lawrence
RE/MAX Properties - Mahwah, NJ
ABR, CDPE, SFR, 203K Specialist

Good post.  A few people are having relatives buy back their homes but it is rare.  This is usually done at the sheriff sale since the buyer is responsible for the evection process as mentioned.  More important the Arm's Transaction rule does not seem to apply to sheriff sales.

May 13, 2013 05:45 AM #30
Ambassador
1,653,033
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

The arms length transaction forms for most banks. .has evolved over the years and they are becoming more direct and clear

May 13, 2013 06:53 AM #31
Rainmaker
503,942
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Keith, I personally don't know of any family member who actually purchased an REO home and let the original owner stay in the house but I'm sure it's been done!

Hello Fernando, Arms Length transaction forms are very clear indeed, not worth risking your freedom!

May 13, 2013 07:22 AM #32
Rainmaker
1,040,731
Nick T Pappas
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Beth, that wouldn't exactly be an arms length transaction would it, but I notice you just made that comment...anyway, i've had another similar request, but judging from the persons tone of voice on the other end of the line when I said I couldn't help him...he had already made several calls to other agents.

May 13, 2013 04:19 PM #33
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Rainmaker
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Beth Atalay

Cam Realty of Clermont FL
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