Can you go to a trustee sale and buy back your home? I have a client (i am in real estate) who came into an inheritance. She asked me this question. We are in AZ. Can she do this or have a relative do this fo her
The answer to your question is absolutely yes!
The auction is an open opportunity for anyone to purchase the home at the auction, regardless of prior ownership or not.
Most people are simply not in a position to do so as the auction requires an all cash payment to purchase.
The question would be what other debts are lingering that could attach themselves to the property after it gets re purchased?
If she is buying this back she is opening herself up to liens that may be around due to the financial difficulties that led her to lose the house in the first place.
But there is nothing that would stop her from bidding on the property if she has the means to purchase the property back.
I don't see any reason why she couldn't. However it would make more sense for her to contact the lender's loss mitigation department and work something out before the scheduled sale date. She could possibly arrange to make an offer for a shortfall payoff. However, if the lender determines that she can "afford" the property, they may offer a loan modification instead. She will not be obligated to accept what the lender offers, so it is worth her while to investigate this option. And the sooner the better if the sale is already scheduled. Most lenders loss mitigation departments are understaffed and it could take some time for a solution to take place.
As far as trying to buy the property back at the trustee sale...More and more investors are showing up with cash and there is a slim chance that she could get outbid at the sale and lose the property. Then she will be faced with eviction and be forced to find other living arrangements in a short amount of time. The sheriff's office could show up with eviction orders in a matter of days. It all depends on if they are backlogged or not. Your friend should contact a real estate attorney for more clarification if she wants to buy the property at the trustee sale.