How do i contact a bank or mortgage company about a house i know is being foreclosed on?

Hi some friends of mine have a house that they have faulted on the loan on. Its a beautiful house and it needs a little work, but my bf and i would like to buy it. How do i find out when it goes to auction or contact the mortgage company about it? LOL i basically have no idea what to do so if anyone has been in a situation like this or has any advice on what to do i would really appreciate it.How do i contact a bank or mortgage company about a house i know is being foreclosed on?
Have your friend contact the bank directly. Foreclosure is a pretty long, drawn-out process. The bank has to go through a bunch of legal hoops in order to physically own the property. Then they have to evaluate it and find a real estate company to list the property. If you can short circuit some of these steps, then they may be willing to deal with you.


As the previous commenter suggested, contacting your friends and the bank and trying to arrange a short-sale may be the way to go. Technically, this is not a foreclosure as the bank does not own the house, but the previous owners will still be defaulting on a portion of the loan. If they owe 300k and you buy it for 250k, then the bank will have to forgive the 50k that your friend still owes. Therefore, in a short sale situation, the bank can accept or deny offers and still end up foreclosing on the home. It comes down to how much they are willing to accept as a loss. Doing a full foreclosure can cost at least $40k to the bank, so even if they take a loss by accepting your lower offer, they may come out ahead by not needing to perform a full foreclosure.





However, this is all contingent on short sale being a possibility. If the house is already foreclosed, or in the process of being foreclosed, then you may be out of luck. In that case, there's not really any telling on how long until it comes out on the market. You could check daily on MLS to see if that address comes up as a listing, but that's a little tedious.How do i contact a bank or mortgage company about a house i know is being foreclosed on?
If these are friends of yours, ask them to ask their bank if they can do a short sale. Or, offer to buy the house from your friend?