How Do I Get Financing To Buy A Foreclosure
I am interested in buying foreclosure properties but I do not know how to do it with out "no money down" financing. What are my options
I am interested in buying foreclosure properties but I do not know how to do it with out "no money down" financing. What are my options
You must have money to buy foreclosures. Maybe you can borrow against your home, if you own one (equity line of credit). Other than that, not sure. The trustee is expecting at least 10% down at the time of sale. Also, they check to make sure you brought your money or you are not even going to have the opportunity to bid. Sorry!
I think that you can still buy HUD and VA foreclosures IF they have been listed for 'All' . Different properties qualify for different loans, I think. I say 'I think' because things change in this world constantly. Go to www.HUD.gov to read, search, read.
you can buy property "in foreclosure " from the owner subject to, or with hard money financing. If you are talking about getting financing to buy property at the foreclosure auction. You probably won't get any financing unless you pledge other assets to get a loan to bid.
You don't necessarily need any special financing to buy a foreclosure. Most lenders don't care if you buy a foreclosure, as long as the asking price (sales price) isn't higher than what it is worth (appraised value). You don't need any "special loan". Just go to your local mortgage broker and get a regular loan. The only thing with foreclosures is, if it is being done through an auction or HUD, you may need a "downpayment" or a "deposit." That can be applied towards closing.
Question:
Can Private lender be used to purchase foreclosure property? :-?
of course private money or hard money lenders can be used to buy foreclosure properties. in many cases with a foreclosure prop. you have a limited amount of time to close and hard money lenders are your only choice. especially if your doing a shortsale. most conventional lenders take months to close and want all types of inspections and searches and money down, which all comes out of pocket. most private lenders will charge a higher interest rate and more points for there quick services. hope this helps.
When buying an investment property for rehabbing/flipping purposes, how do we calculate the closing costs in the equation. While trying to get preapproval's for myself, some lenders have quoted about 5 to 6k closing costs on about 125k loans with 20% down, is this normal ?. Any suggestions and help is appreciated thanks.
Machismo,
Me being a mortgage broker myself can tell you that investment property closing costs are going to vastly differ from primary residence. PR's will usually run you about 2-3% of loan amount. IP's will usually run you about 5-6% of loan amount... so I guess to answer your question, yes, it is normal.
thanks devlon that was great help to me, I felt I was getting unfair quotes at first. Since u do financing yourself devlon, do you offer low closing cost for higher interest rates on investment loans ? I am just curious to know what possible ways I can reduce the closing costs.. Thanks for you help.
Quote:
On 2004-10-20 11:23, ceinvests wrote:
I think that you can still buy HUD and VA foreclosures IF they have been listed for 'All' . Different properties qualify for different loans, I think. I say 'I think' because things change in this world constantly. Go to http://www.HUD.gov to read, search, read.
I think the OP was referring to buying preforeclosure or at the foreclosure sale. A HUD home is a home that has been foreclosed upon. Once HUD has it, the carrying costs and a realtors commission must be added. At that point, very few HUD homes are any longer a bargain. You can generally do better buying retail.
i agree with you general hud's or va props. are no longer can be bought at deep discount.....................km
Question on HUD or VA properties:
If the current owner (who had bought a HUD property) is in foreclosure, are there any other things to 'watch out for'? In other words, does HUD somehow protect the current owner from them foreclosing or would this still work as a straight and normal foreclosure proceeding; specifically in NJ. Thanks in advance!
In most states you have a day or so to come up with the $$$ for foreclosures. Texas can be as fast as 20 minutesafter the sale. And this is full purchase price.
My recommendation is that you meet up with a hard money lender. They will most likely not give you a check to bid at the auction, but they might go down there with you. That way, they carry the cash and buy the place to your bidding. You can do the paperwork same day so taht you own the house but owe them on the note.
Quote:
On 2004-10-27 10:39, MarleyLiv wrote:
Question on HUD or VA properties:
If the current owner (who had bought a HUD property) is in foreclosure, are there any other things to 'watch out for'? In other words, does HUD somehow protect the current owner from them foreclosing or would this still work as a straight and normal foreclosure proceeding; specifically in NJ. Thanks in advance!
The fact that someone bought a HUD foreclosure, in no way indicates that HUD is guaranteeing their current mortgage or involved in anyway in their current financing.
If the home you are asking about has a conventional mortgage, you may have a chance at a deal on the courthouse steps as the bidding will generally start at a lower number to save on doc stamps and recording fees.
If it has a government insured mortgage, the lender is required to open the bid at the full amount of the judgement. This eliminates the possibility that the bank could get the property cheap and then ask Uncle Sam to make up the difference between the selling price and the judgment.
GeneralSnafu, thank you for your answer!
Quote:
On 2004-10-28 00:28, GeneralSnafu wrote:
Quote:
On 2004-10-27 10:39, MarleyLiv wrote:
Question on HUD or VA properties:
If the current owner (who had bought a HUD property) is in foreclosure, are there any other things to 'watch out for'? In other words, does HUD somehow protect the current owner from them foreclosing or would this still work as a straight and normal foreclosure proceeding; specifically in NJ. Thanks in advance!
The fact that someone bought a HUD foreclosure, in no way indicates that HUD is guaranteeing their current mortgage or involved in anyway in their current financing.
If the home you are asking about has a conventional mortgage, you may have a chance at a deal on the courthouse steps as the bidding will generally start at a lower number to save on doc stamps and recording fees.
If it has a government insured mortgage, the lender is required to open the bid at the full amount of the judgement. This eliminates the possibility that the bank could get the property cheap and then ask Uncle Sam to make up the difference between the selling price and the judgment.