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Selling a house after foreclosure sale without equity.
Alonzo lost his job and the house was sold at the sheriff’s auction. There was no equity in the property and it required a lot of repairs. We purchased the quitclaim deed from Alonzo and have recommended to him to apply for a short sale. Yes, a short sale still could be done after the foreclosure sale. Alonzo had to send in an application to the foreclosing bank and proved that he lost his job and had no income. The foreclosing bank reduced the redemption amount from $180,000 to $140,000 (numbers are rounded). We sold the redemption rights to a local house flipper and shared the proceeds with Alonzo. It was a truly win-win-win-win transaction because:
Alonzo got money even though there was no equity in the property.
The foreclosing bank was paid off.
The investor has purchased a flip at a low price and made a good profit after the rehab.
Real Estate Liquidators also made a small profit on this deal.