Home Buying in North Port>Question Details

Stepm, Home Buyer in Cape Coral, FL

can you finance a home at foreclosure auction?

Asked by Stepm, Cape Coral, FL Wed Feb 27, 2013

how can you get bank financing for a home sold at auction?

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This question was asked from this property: http://www.trulia.com/property/3109035906-3081-Ulman-Ave-Nor…

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Some auction companies offer their own financing, however, be aware of the fact that
the auctioned properties are sold in "as is" condition at the auction.
This means that the lender will not finance if certain appliances are missing, or there is obvious mold, or the roof is gone etc. Or, they will finance, by they will subtract the costs of repair (called costs of cure) from your purchase price, which would put you in the position to cover the balance between the new lower purchase price and the original price (and it could be a lot - depending on the property).

In the mean time, your escrow money is on the hook, and the lender is pretty much on seller's side,
in this instance.

There are many potential title issues, and you may not have a way out of the transaction.
Seller's title company is not going to be on your side either - and you might have to buy with
title insurance not covering everything (it's called "with exceptions to title").

You can also find your own lender, but if you can't close on time, find a hard money lender as a back up. In most cases, if you can't close on time, you'll be paying about $100/day for the delay.
So, please read your contract, consult an attorney, and make sure you have a back up strategy - in case your financing plan does not work out.

So - best of luch and beware!

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
305-904-2355
1 vote Thank Flag Link Wed Feb 27, 2013
You must have cash or a cashier's check at time of auction. Go to Auction.com and read the terms of the sale for this property.

Upon arriving at the Auction, you will be required to confirm your registration subject to meeting the minimum requirements set forth herein, including, but not limited to, verification that you have in your possession Cash or a Cashier’s Check (made payable to you) of no less than the estimated Total Amount Due for each Property you intend to place bids. Upon confirmation of your registration, you will be given a bidder card with which to bid at the Auction.

Tammy Hayes, Realtor
RE/MAX Palm Realty
tammyhayesre@gmail.com
941-276-6185
http://www.tammyhayes.remaxagent.com/
1 vote Thank Flag Link Wed Feb 27, 2013
If that option was indeed available, why would you want to purchase a property at auction? Auctions are for experienced investors who are willing to take a risk with every property they buy.
1 vote Thank Flag Link Wed Feb 27, 2013
Not typically - bring cashier's check
0 votes Thank Flag Link Wed Feb 27, 2013
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