Conventional Financing To Purchase A Foreclosure
If you were preapproved could you buy a property at the auction steps using a standard loan? I guess alot of it depends on what the bank would allow but has it been done?
thanks
Could be done, but courthouse step sales usually have a very short settlement timeline. It would not be uncommon for you to buy at auction on the tenth of the month and pay a 5% deposit on the day of the sale, then have until the end of the month to bring the balance of your purchase price to the courthouse.
If you are a day late, you forfeit the deposit and the property is sold at auction again at a later date.
If you can get an institutional lender to move that fast, then your purchase can be done with converntional financing. If not, then you may have to resort to hard money lenders for your financing.
Thanks loon. That helps. On second thought, they are probably not nearly involoved enough to put in the effort of shopping any offer.
My experience with CW on short sales has been frustrating. It took them 4 months to respond to an offer, which had since been withdrawn, and property value decreased another $60K !! And they were rejecting the higher offer!!
I hope things improve now that BOA owns CW
If you have your financing or paying cash! You can set a deadline on a offer! I am use to this type of negotiations. I love these types of deals! Money always talks! Good luck![ Edited by TheShortSalePro on Date 02/26/2008 ]
The banking/mortgage system has been streamlined in the last few years and does not have the capacity to deal with all the short sales/foreclosures in the last year. They are totally overwhelmed and overworked. Once you have a contact...use your interpersonal skills to keep your file at the top of the pile. Believe me, they do have a growing pile. Keep calling, but be polite.
*COUNTRYWIDE finally countered, I mean.
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