Posted by Tom – IN on July 30, 2001 at 07:37:04:
One way that I’ve used is to prearrange a (slap) mortgage on some other house you own. I’ve been able to come up with a check on a slap mortgage in less than 8 hours. Then, after the dust settles, arrange a new mortgage on the auction house.
acquiring mortgage on court house auction property - Posted by Wayne McDaniel
Posted by Wayne McDaniel on July 29, 2001 at 23:26:22:
I am looking to buy a piece of property at a courthouse auction. I have checked out the neighborhood and the sales prices of comparable homes in the area. Before buying this property, I would like to know how to go about being assured of a certain amount mortgage that I might be able to get on the house. Any advice on how to go about this would be appreciated. This would be my first deal and while I am excited about the potential, I am a little anxious. This property is being resold due to an upset bid not being followed through on and the tax value is $20,000 more than the original upset winning bid. With houses in the area selling for much more than the tax value, I see strong potential for a flip with a minimum of rehabbing. Please offer me ideas on how to get the financing set up, using little out of pocket money and walking away with cash at closing. Thanks!!!
Re: acquiring mortgage on court house auction - Posted by Ronald * Starr
Posted by Ronald * Starr on July 30, 2001 at 21:26:07:
Wayne McDaniel--------
When you ask questions about foreclosures, please state the state. Laws differ greatly.
If there is a grace period to come up with the financing and you need only a little bit down (such as North Carolina’s 10%), you might be able to assign your right to buy the property to somebody after you have been awarded the sale but before the money is due.
Also, similar to Tom’s suggestion: Lines of credit against your home or other investment properties. Pull out the money for the sale, but it back when you refinance or resell the property.
Have you done careful analysis? You know for sure the title situation? If this is a judicial foreclosure state, as it sounds from your post that it is, you have read the foreclosure case file haven’t you? And done your own title work in the county records?
You have checked for delinquent property taxes? You have checked for possible judgments against the property? You have checked for possible problems with well and septic system if their is no piped water and sewer system? You have talked to nearby neighbors about any drawback to the property? You have tried to see as much as possible of the property? Foundation, back yard, inside if possible? You have checked to be sure that any utility bills which will be against the property will not be your responsibility or you are willing to pay them?
You don’t sound as though you have a close fix on the market value of the property. You should have. Better get out there and find out what properties similar to it have been selling for recently. You should have the market value pegged to within about a 10% range or so.
Good Investing*******Ron Starr*****************