Finance Forclosure
We are new to the foreclosure business. We have found a nice property going up for auction in two weeks. My question is ,,,on the auction listing it notes that the balance is due in 15 days ... Are the banks willing to work with you on this ?? I can get the financing but not in 15 days ... Any information will help.
Thanks 
A lot depends on the bank and the siituation. But based on your question, I would not suggest you buy it at the sale or pay off the bank even if you had the money. This business has a ton of risks if you don't know what you are doing.
Invest your time before your money.
Dreambuilder
If you are planning on purchasing this or any other property using a conventional loan, go ahead and get pre-qualified, get all you paper in order .
That will help expedit things when you do have a contract.
Hello Out there:
I need some help. I have located a foreclosere that will be auctioned off tomorrow. It seems that the foreclosure is from an individual holding a note for 40K. The bid is starting at $61K. What happens to the first when the second forecloses?
Help.
GetRafa
You want to first get preapproved, not pre qualify, ask you mortgage broker/lender they will know the difference. Once preapproved you can close a loan in as little as 2weeks.
But just like Dreambuilder states, buying at an auction can be very risky. Most foreclosure don't allow you to view the inside of the building before the auction unless you do a little B&E. So even if you get preapproved for say 100k, doesn't mean the prop will be approved for that amount. You could go to an auction, win a bid for $80k on a prop that looks immaculate on the outside, have an appraisal done the next day, only to find out it appraises for only $50k. That is the only amount the lender will give you, so now you will have to come up w/ the add $30k or forfeit your deposit which could be in thousands depending on your state.
If you haven't done any foreclosure before, I suggest you learn as much as poss, go to a couple of auctions and get a feel for it and do your due diligence on the prop you want to bid on. Should minimize your risks.
Thanks for the help ..here is a little back ground on the sale. As suggested we ran a little B&E....House has only two owners ..original owner kept the house spotless on inside and outside but have not updated the inside of the house since the mid 70's. Current owner is in jail and will be for a long time the house is empty. Paid $275,000 for the house and owes about $250,000 plus about two years of property tax. Any suggestions on this . We are approved for the finance of mmore than 300,000...The only question is on the auction it says balance is due in 15 days...Anyone have any advice on how to work the 15 day issue ...The property and money are not the problem it is the time the balance is due.
Sorry I can't be any help to you, but..........
it could be worse.
In my county, we have until 5 P.M. the day of the auction to pay with a cashiers check the total auction price!!
Good luck!
I deal with foreclosures in 3 different counties, and I have to provide a Cashier's Check on the spot for any foreclosure I buy...15 days would REALLY be a great boon to my business, as I have 2 brokers who can guarantee me financing in as little as 6 days.
Quote:
On 2003-09-15 01:14, GetRafa wrote:
Hello Out there:
I need some help. I have located a foreclosere that will be auctioned off tomorrow. It seems that the foreclosure is from an individual holding a note for 40K. The bid is starting at $61K. What happens to the first when the second forecloses?
Help.
GetRafa <IMG SRC="images/forum/smilies/icon_lol.gif">
Nothing happens to the 1st. You take the property 'Subject to' the 1st, & taxes, + any other leins that have priority over the 2nd being forclosed. This info is critical prior to you bidding at th sale.
Worked with a lender yesterday ....The 15 day balance due will not be a problem . also my attorney has already looked into the title and that looks ok as well....Thanks for all your help...