How To Get Finacing For A Pre-foreclosure
Will banks finance you on pre-foreclosures within 30 days. Or say you go to a auction and win the bid and you have 30 days to pay the balance. Will banks work that fast for you to get a mortgage?
Cgstonex
My friend what foreclosure sale will give you 30 day to pay off if you are the high bidder?
What have you studied to this point about foreclosures?
[addsig]
Dear John,
If you lived in Taxachusetts you would see in every newspaper under legal notices of foreclosures that it says that the winning bidder has 30 days to pay the mortgage in full. It also says that you must have $5000 dollars in hand to bid. If you win the bid you pay the $5000 on the spot and have 30 days to pay the rest. So my friend you see things are done different in different states. In Massachusetts you have 30 days. I just want to know if it would be possible to get a new mortgage from a bank in 30 days.
[ Edited by Cgstonex on Date 03/14/2005 ][ Edited by Cgstonex on Date 03/14/2005 ]
Unless you have a well established relationship with a bank such as a line of credit. I doubt that they could work that fast. You best bet is to use hard money or private lenders that will at get you by until you can get cheaper permanent financing or enough time to flip the property.
Quote:
On 2005-03-14 00:17, Cgstonex wrote:
Dear John,
If you lived in Taxachusetts you would see in every newspaper under legal notices of foreclosures that it says that the winning bidder has 30 days to pay the mortgage in full. It also says that you must have $5000 dollars in hand to bid. If you win the bid you pay the $5000 on the spot and have 30 days to pay the rest. So my friend you see things are done different in different states. In Massachusetts you have 30 days. I just want to know if it would be possible to get a new mortgage from a bank in 30 days.
<font size=-1>[ Edited by Cgstonex on Date 03/14/2005 ]</font>
<font size=-1>[ Edited by Cgstonex on Date 03/14/2005 ]</font>
This is why I asked the question? I wanted to know! Understand I now buy and sell real estate actively in 19 states but have only purchased one in Massachusetts a few years ago. Most foreclosure sales in my primary market states require proceeds the same day of sale or within 24 hours.
The 5k at time of sale and balance in 30 days just simply gets my attention! This is why I asked the question?
The other question what have you studied to this point about foreclosures?
To determine your knowledge base in general of this area so that I would be able to provide an answer to your question as it sounds like you may have never obtained a mortgage before as for most this is a time consuming process and to bid on a property with hopes of getting a loan seems to display a lack of knowledge of the mortgage process as most cases a lender will need to evaluate your debt to income ratio, credit history, credit score, appraise the value of the subject investment and the list goes on.
So in answer to you mortgage question "YES" but it depends on you the borrower, your ability to pay, what your credit history reflects and so on.
[addsig]
Thanks for the input. Here is another question, one of the posted foreclosures that I looked up has a Declaration of Homestead. i believe this protects homeowners from losing all of there equity in cases of leins on there home. Any knowledge of this?
Mortgages used to purchase the residence are exempt from the Homestead Law, now keep in mind this is all subject to what type of homestead filed, equity, occupency status and age of property owner see Massachusetts General Laws, Ch. 188, §1-10
[addsig]
Thanks for the info, I have a buddy that is a mortgage broker. I will talk with him but he is pretty new to the buisness. I will also dig up the Mass laws on declaration of Homestead. When I looked up Mass deeds home page it listed a complaint on the mortgage and the next line had a Declaration of homestead. Both the complaint and the Homestead were declared within two week of each other. So that makes me think that the declaration of homestead will help this owner in some way. Thanks for the info
I would suggest you get yourself pre-approved by the bank or mortgage company for amount you qualify for before the auction comes up.
Some companies will give you a letter stating the amount of loan you qualify for, and you will have it with you in case you are the winner.
This way you will know if you will be able to receive a loan before putting your 5k out there.
i did that before ( got myself pre-qualified ), and when I was looking for property or went to an auction , I knew I was already qualified for a loan, and how much $ I qualified for. It made it much better bidding on the property.
hello,
All I can tell you is that if you want to learn how to invest in the state of Massachusetts, one of the toughest states to invest in due to the legal climate here, you need to learn from real investors doing real investing in this state, so go to http://www.nereig.com and go to the Worcester meeting monthly.
Al Kosinski is the man for buying and selling and holding real estate creatively in this state. David Lindahl studied under him, and David is considered a guru to many.
Good luck, Dave
I was pre-approved ( not sure if you mean pre-qualified or pre-approved ). There is a difference between the 2.
If you have been pre-approved , they have done your credit check and all the other good stuff that goes with that, and when you find a property it just has to be approved. The property that I purchased was a reo that needed about 25k in repairs. At the time I got that property the 203k loan was still offered to investors, but it is not longer offered for investors. I still think with a pre-approval it should work the same way.
The answer to your question "How long did it take ". I was able to close in about 3 weeks.
Hope this helps !
Thanks Dave, I will check out the worcester meeting. During the roundtable at these meeting do they go over an assortment of RE issues or is it one topic that is pre-planned for each meeting?