Foreclosure in The Villages>Question Details

Tmack, Home Buyer in The Villages, FL

how to finance a foreclosure. can it be done in advance?

Asked by Tmack, The Villages, FL Sun Jul 11, 2010

When bidding on a foreclosure is it a cash only at time of sale or do you have time to set up financing?

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Foreclosures that Fannie Mae Home-Path homes, financing is offered. Home-Path Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors.
0 votes Thank Flag Link Mon Jul 29, 2013
It depends when and where you are buying the foreclosure and what type of shape the property is in. If you are buying the property at foreclosure auction , at least in Wisconsin, you will need 10% in certified funds at the auction and the balance in 10 days. So for an auction you need a line of credit or cash available.

If your buying a property that is a reo that is in rough shape you will need to use the lenders financing (if available) or fha 203 k plan , cash or a construction loan which will require a higher down payment.

Lastly if it is a REO that is not in bad shape than FHA or a conventional loan should do it.

Keith Manson
First Weber Group
Certified Distressed PRoperty
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Mon Jul 12, 2010
If you're bidding on a foreclosure at the courthouse then you have to pay all cash immediately so no you can't get financing.

If the house is listed with a Realtor then yes you can get a mortgage.
0 votes Thank Flag Link Mon Jul 12, 2010
Hello, again! You can make application for a mortgage and obtain approval in advance. Then all you have to do is find a home to make an offer on. As mentioned before by other agents, in some cases you will also have to apply with the Seller's preferred lender. They want to make sure that if your lender, if you have one, denies your loan, that you could qualify for alternative financing and they would be able to step in and take over. This insures the Buyer will not use the financing contingency to get out of the deal down the road. Sometimes the preferred lenders can offer more attractive terms and rates, and insure a smoother process for everyone. Most offers to purchase will require a pre-approval letter from a lender or proof of funds.
Web Reference: http://www.DianneScott.com
0 votes Thank Flag Link Sun Jul 11, 2010
Hi Tmack

Same as the answer to your last question.

Good Luck

Kevin
0 votes Thank Flag Link Sun Jul 11, 2010
You can get financing from any bank out there.

read this article I found.
0 votes Thank Flag Link Sun Jul 11, 2010
You can submit an offer on foreclosures and finance it. You will need to provide a letter from a lender that you are qualified to purchase. They may even ask you to get cross qualified with a lender of their choice.

Getting a true qualification on a mortgage can take some time. So locate a lender first and to save yourself some headaches get pre-approved not just pre-qualified.
0 votes Thank Flag Link Sun Jul 11, 2010
TMack

So I am presuming from the question that you want to bid on a home at a foreclosure auction.

The answer is YES. You can obtain financing prior to the auction through a lender of your choice, or when the auction takes place there are lenders available to you.

Here is the caveat of purchasing a foreclosed home at the Auction. You have to have your home inspection prior to the auction. You cannot have it after.

So, if I were you, this is what I would do. Contact my lender and see how much I am qualified for. Contact my agent to help you find a property in that price range. Visit that property when there is an open house. If you like the property, make arrangements to have the home inspection done. This will tell you the good, the bad and the ugly. From that home inspection I woudl determine if I wanted to proceed in purchasing the property at the auction. If so, you need to register to attend the auction if being held in person. Not all auctions are in person.

I've had several properties go to auction.
0 votes Thank Flag Link Sun Jul 11, 2010
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