Mortgages On Properties With Sheriff Deed?
Perhaps a mortgage broker can answer this or someone who buys forclosures at the sheriffs sale. I have heard that you can't get a mortgage on a sheriff sale forclosure because you can't get the necessary title insurance when a sheriffs deed is the method of transfer. Is that correct or not? Anyone come across a problem with this?
Do you mean before or after the sheriff's sale. Either way you can as long as you have title insurance. That can be a problem if the title company will insure you. But I know it has been done because I did a loan for someone that had a deed from the sheriiff's office. That was in Jan 2003. The title company used a procedure that cleared up title as soon as sherriff took over property. We closed in two days. It was very hard, the loan was clear to close 3 weeks before the sale. Another thing is if you need an interior appraisal for the deal how would you get in without trepassing. We only needed a drive by that why it was done. You would have to check title in your area to be sure you can do it.
Lori
[addsig]
In my state you have to put 10% down the day of the sheriff sale then you have to come up with the rest in about 10-12 days when the sale is approved. I was hoping to be able to go to the bank that I usually use and get a mortgage loan but I don't think I can because of the title insurance issue and also as you said, they usually want an appraisal and you can't get in there anyway. I was hoping that some on this forum had dealt with getting mortgages for these forclosures or if you've had to make other types of financial arrangements for these. I really don't have enough cash to buy without some kind of financing but there are alot of deals at those sales lately and I'd hate to miss out.