Right now we cannot afford his asking price, but by the time the property goes on the auction block we will be able to bid on it as we have salary raises coming in the next three months. Should I approach him and see if he is willing to lower his asking price, or just wait it out and try to contact CitiMortgage later? Or wait for the auction and risk someone else getting the property in the meantime or bidding higher at auction time?
I am a first-time buyer with two small boys in a cramped apartment so I need to be smart about this. -- Via e-mail
Answer: You don't mention one important factor -- how much is the present mortgage debt? At a foreclosure auction, that's what Citi will bid. You'd need to bid more than that, and you couldn't go the normal route to apply for a mortgage. Local practices vary, but in most places, the winning bidder must pay immediately in cash. Bidding at foreclosure auctions is not a job for amateurs.
Depending on the amount of the mortgage, your neighbor may not be able to sell for less than he's asking. And the foreclosure process may have gone too far to stop now.
Find a broker, or better yet, a real estate lawyer, to contact the bank, find out just what dollar amounts are involved, and see if the process can be put on hold while you try to negotiate a purchase.
Let me know what happens; I'm interested.
Owning More Than Half
Dear Ms. Lank: My father-in-law owns 51 percent of his house and his deceased wife's family owns 49 percent. Who can make the decision to sell the house? -- K.W., Rochester
Answer: Percentages don't really matter. Any one of the owners can ask for a court-ordered auction sale, which is messy and expensive. They'll all come out better if they can work something out amicably. Failing that, it's time to bring in mediation, and as a last resort, lawyers.