Houses for sale at a forclosure auction, they ask for down payment immediately, the remaining with 24 hours. Where do youget the funds for that immediately?
The details are as follows: 10% of successful bid immediately at conclusion of auction, balance by noon the next business day, both by cashier’s check. Assuming I have the down payment, how do I secure the rest of the funds before the auction starts? Not enough in home equity so forget that. Any thoughts?
you already haev a loan approval
Save up at least $10k before you go to the auction. If the down is more, which it shouldn’t be, then tell them you want a loan with 5% down instead of the usual 20%. It can be done.
You get pre-approval for a loan from your bank before you go to the auction.
You get pre-approval for a loan. And by knowing how much you pre-qualify for you know how much you can pay.
Get loan approval for up to a specific amount before the auction. Then dont go over that amount
Your bank?? Get a line of credit set up, so when the opportunity arrives, your ready.
you can get a pre-approved loan from some banks or credit unions etc.. However it can cost you a bit as you must take the risk of paying for valuations, bldg inspections etc. prior to auction but of course there is no guarantee you will win the auction. I f you already own property and have equity you can also get an ‘all in one’ type loan (eg line of credit) and use those funds for the new property. My advice is to really check out the market in the normal way as nowadays, ususally, the only homes that go to auction are the very expensive side of the market and most everyday people dont have that kind of money available at the drop of a hat.
You establish an open line of credit with a bank. Usually home equity. You can get another lone on the property to pay that back if you wish after you purchase it.
I would get pre approved for a loan NOT PRE QUALIFIED they are not the same pre approved is like having money in the bank, based on your income level being x and your credit score x you are pre appoved for $X that way you know how much you can spend, (you do not need to get an appraisal and inspection until you have won the upset bid period usually 10 days), be prepared to put at least 10% of the winning bid down as your deposit (note you will get credit for this on the HUD closing statement) the loan amount will be the remaining 90% (or 80% LTV with a piggy back second for 10%) and the person running the auction upon submission of an approval certificate from a lending institution will usually give you 30 days to close on the title. Remember to check the title thoughrly or have it “searched” if you buy property on the “courthose steps” you buy it subject to its liens, judgments and claims, so even though that $30,000 property sounds like a steal it may have $100,000 in federal tax liens and judgments on it and is no longer such a great deal, however, sometime you can really get some real gems.