How To Get Funds Before Going To An Auction...
I do weekly research at the county courthouse and would like to attend some auctions when I am seriou (have the needed funds to win an auction).
How do auction winners go to secure funding on properties if they don't know how much they will need?
How to get funds for auctions is my question.
get preappoved at a loan inst. on have cash..km
I have been pre-approved for a certain loan amount, but the auctions need to have all cash or the funds paid within 24 hours usually correct? We all know a bank loan usually takes longer than that to give you funds or cash.
Any other sources other than traditional bank loan lenders?
This is all a state and county specific issue. In Iowa we must pay all cash in the form of a cashiers check the same day. One county I work in requires the money within an hour while another county is less strict. The strict county requires I put a $100 bill down as deposit as well as some sort of proof of funds and the less strict county only requires the proof of funds.
Basically what I am saying is that you should contact the sheriff's office or trustee's office to find out the auction terms.
GOOD LUCK and be careful. Buying at an auction if you don't know what you are doing can be very costly.
Lots of county court house auctions in CA even require full payment before you walk out the door, let alone 24 hours. Some will take a $5K or $10K deposit and the balance due in 30 days.
I have never considered (and don't know how possible it would be) getting a loan to purchase property at auction. But on the flipside I have used equity lines of credit, personal lines of credit, credit card advances, money from family, and just plain cash from the savings account.
I guess it will depending on the auction you attend. Do the rules state cash or cashier's check only? If so, there is no getting around showing up cash in hand.
[addsig]
I'm still a little unclear on how one goes about securing sufficient funds to show up to a trustee sale and purchase a property. I understand that counties have different rules regarding timelines of payment. The one I currently live in requires secure funds that day. My questions are as follows: 1. Are hard money lenders able to get proper funds/paper work done within a couple of days of the auction (since they always appear to be either canceled, or postponed within a couple days of the sale.) And two, if you have secured a hardmoney loan and the auction is postponed/canceled how does that work out with the loan?
thanks,
Rob
To clear it up... I think in these situations you have to have the money or access to it through your own means. If you wanted, you could skip the auction and go buy a boat, a car, a diamond ring, or bet the whole wad on black because no one can tell you how to spend it.
Can you have the freedom with a line of credit? Yes. Same with a credit card. You can spend the funds which ever way you want. Going somewhere and filling out loan documents for something you may or may not buy at auction just doesn't happen. Well at least I don't think so, I'm still learning all the time myself.
[addsig]
For California Trustee's Sales the Trustee has the right, and in every case I've seen does, to require each bidder to qualify (show cashier's checks) for the maximum amount they may bid on each property and to receive 100% of their bid price in cashier's checks before the completion of the auction (California Civil Code 2924h(b)(2)). You should assume therefore that you'll need all the money before you go to the auction, your maximum bid drawn up on one or more cashier's checks, and be willing to part with that money before you leave the auction.
Sherrif sales are locally controlled, just call them up and ask.
Believe radio52 to be correct. Looking to bid on property in 3wks and talked to lender about hard money loan. I was told the property I bid on would be the collateral for the loan so I imagine I could get the loan for however the property is potentially worth which might cover the bidding if it goes higher. Still unsure of how long funds or paperwork take but thinking this is my only option of getting a deal. He told me it is usually 10-20% interest but no time limit to re-fi. He suggested I contact the trustor first and strike up an arrangement but that didn't work and I need to meet my lender again.......Gee