Foreclosure Lender Funding
There are several methods for funding foreclosure purchases, starting with the lenders that own the foreclosures themselves. For people looking to buy a single foreclosure for their own housing needs, lenders with foreclosures may be willing to finance the purchase. Many banks and other mortgage lenders maintain extensive inventories of foreclosed homes, and flexible lending programs to help people buy them. Foreclosure investors, though, usually need to seek funding from lenders or other sources by using serious investment proposals.
Funding Foreclosure Purchases
Among an extensive network of foreclosure investors across the country, some loan millions of dollars to buy foreclosures in bulk lots. For the hopeful foreclosure purchaser of limited means, locating such foreclosure investors is critical. Many funding sources, including internet-based 'crowdfunding' websites, actively solicit bid proposals from those looking for funding for their business proposals. Due to the amount of money needed to purchase foreclosures, though, 'angel investors' may be the most likely source of steady funding.
Foreclosure Angel Investors
For people looking to buy foreclosures and then 'flip' them for profit, it's easy to find angel investor networks online. Internet-based 'find-an-investor' websites go by many names and some charge for registration. But all such find-an-investor websites work to put angel investors together with people having solid ideas for turning funding into actual returns. Be aware; if you're looking for a foreclosure angel investor, you'll need to present a good business plan.
People looking to buy foreclosures always line up guaranteed financial backing before making any purchases. Angel investors may be single individuals or groups of investors on the lookout for entrepreneurial individuals and small businesses needing funding. Typically, angel investors charge interest rates several points above prime lending rates and they like to see investment returns of 20 percent or more. Most investment funding sources also want to see those requesting funding actively risk some of their own money, too.
source : http://homeguides.sfgate.com/funding-buy-foreclosures-49850.html