Property Matters: Buying a Home in Foreclosure

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Property Matters: Buying a Home in Foreclosure

Can I buy a property that is in foreclosure directly from the bank before a foreclosure sale?

Written by: Michael Dujovne, Esq.| July 13, 2016

Answer: No. The property owner continues to own the property after defaulting on the payments and during a foreclosure case. The bank has a lien on the property before and during a foreclosure case, but is not the owner. Even after a foreclosure judgment is entered in favor of the bank, the property owner continues to own the property. The property owner has a right to redeem the property and get the lien released by paying off the entire debt all the way up to the date of the judicial sale. Even after the judicial sale, the bank still does not own the property. There is a statutory ten day period for any interested party to object to the sale. Once that ten day period expires with no objections, then the clerk of court can issue a certificate of title to the bank (this sometimes takes up to thirty days). The bank does not become the owner, and cannot sell the property, until it receives this certificate of title.

Anyone who wants to buy a property that is in foreclosure before the certificate of title is issued must deal directly with the property owner. This is very common, and if the owner owes more than what the property is worth, this is called a “short sale.” Short sales require the bank’s approval, and the buyer must be prepared to wait a long time for the bank to approve the short sale request. Those who do not want to enter into a contract with the current owner can bid on properties at a foreclosure sale.

            Michael E. Dujovne, Esq., of Volk Law Offices, P.A., practices in the areas of real estate, business and civil litigation.  VolkLaw is located at 1901 S. Harbor City Blvd., Suite 700, Melbourne, FL 32901.  VolkLaw's telephone number is (321) 726-8338.  The matters discussed here are general in nature and are not to be relied upon as legal advice in the absence of a consultation with Volk Law Offices, P.A.  No attorney-client relationship is intended or created as a result of matters discussed here. Volk Law Offices, P.A. and its attorneys and other employees make no representations or warranties with respect to the matters addressed.  Seek legal advice about your specific needs from an experienced attorney before signing any legal papers.


The matters discussed here are general in nature and are not to be relied upon as legal advice. Every specific legal matter requires specific legal attention. 

The law is constantly changing and matters discussed today may not be the same tomorrow. Legal matters are also subject to different interpretations by attorneys, judges, jurors and scholars. No attorney-client relationship is intended or created as a result of matters discussed here. You should consult counsel of your choice if you have any dealings in these areas of the law. Volk Law Offices, P.A. and its attorneys make no representations or warranties with respect to the accuracy or completeness of the matters addressed.


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