Hi, My name is XXXXX XXXXX I am a Licensed, Practicing Attorney with 25 years experience in real estate and business transactions,
I am sorry you are experiencing this difficulty with the owner,
When a lender, no matter what the size is, forecloses on a mortgage, it has a duty to deal fairly with the property and not do any act which would compromise any possible benefit which would inure to the former owner, or compromise any chances the former owner might have in buying back the property at auction or Sheriff's Sale. While I realize that these possibilities are practically zero, if no on the minus side already, but nevertheless, the manner in which the lender handles the foreclosed property is strictly scrutinized. Any agreement which the lender might enter with you to insure that you purchase the property in a non-competitive setting and to the exclusion of other bidders would be considered "collusion" for which both you and the lender would be severely penalized. If it were discovered at a later date, the entire transaction would be set aside.
I did not understand where you saw an additional risk if you were to purchase the loan and take an Assignment of the Mortgage of Deed of Trust from the lender because I do not see much risk in buying the Note from the lender and taking an Assignment of the Mortgage, or Deed of Trust, as the case may be, then conducting the foreclosure proceedings yourself. While it will take some extra work on your part, it will certainly remove any appearance of collusion. At the sale, you would submit a bid for the amount you paid for the loan. If there are other bidders there who bid an amount higher than your bid, you will be benefiting from the higher bids as the owner of the loan.
I wish there was an easier and simpler way, but there just isn't because you would stand to lose a lot, therefore, just like Caesar's wife was, your transaction also must be "above suspicion and beyond reproach,
I realize that this is not exactly the Answer you were hoping for and it would have given me great pleasure to give you the Answer you wanted to hear, but I have an ethical obligation to you to give you only correct Answers and information, so I am respectfully asking that you not hold the State and Federal Banking Laws and Regulations applicable to your situation against me,
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