Finding the defaulting borrower can be a major challenge because many don’t live in the property, which is in foreclosure. I used to send letters to these folks, but the response rate was very low. Then I learned why. One day I visited a house where the owner had phoned me about my offer to loan him funds to cure the default.

Although the exact reinstatement period varies by state, it is typically three to six months before the foreclosure auction will be held to sell the property. Remember, in Texas it can be as short as 21 days! So don’t waste time. Contact the defaulting owner as soon as possible after the lender recorded either a lis pendens to start the foreclosure lawsuit or a Notice of Default. However, because of the “do not call” telephone registry rules and penalties, you might want to avoid phoning the defaulting borrower if you operate a real estate brokerage or foreclosure business.

Please understand only about 5 percent of homes in default ever go all the way to a foreclosure auction. The other 95 percent are sold, refinanced or the owner borrows the money to cure the default. If the encumbrances on the home leave at least 25 percent equity, there is a good chance you can acquire that house before the foreclosure auction.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling a Boca Raton FL condo. Visiting the Delray Beach community? Contact Realtor® Caesar Parisi for information on buying or selling an Atlantic Grove Condo in Delray Beach Real Estate.

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