Home Buying in 92555>Question Details

Karen Branch, Renter in Moreno Valley, CA

can you get a first V.A. HOME LOAN to buy a property at an auction ?

Asked by Karen Branch, Moreno Valley, CA Fri Mar 9, 2012

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Hello Karen !

Your suggestion triggers a 'catch 22' situation.

1) Most if not all title insurance companies WON'T issue a policy on the spot, especially because they need to determine which lien holder is auctioneeing off the home (i.e., 1st, 2nd, 3rd, HOA, etc, etc).

2) Conventional, VA, FHA, and Hard Money all require one thing... evaluation of the proposed home, and they won't waste their time unless you present them with an approved offer/ contract of sale, hence an open escrow.

3) The Auctioneer is looking for cash on the spot, payment in full within minutes of accepting your bid. ( Not going to happen if you are looking for VA or FHA or Conventional Financing )

4) A Personal Line of Credit WILL work because it's liike a credit card - your maximum is already pre-approved and a predetermined amount is already established. But you have to show up with exact change at the auction, in CASH or CASHIER'S CHECKS ( kind of tricky when you don't know what the ultimate winning bid will be, eh?!?)

5) There is a HIGH risk of loosing your shirts and pants at an Auction if you don't do your homework (hence the hesitation by Title Insurance Companies to issue policies for auction purchases).

â–º There are so many homes for sale-- with the right Buyer Agent, you should be fine !

Don't have an agent ? Or want a second opinion? Give me a call !

Most Kindest Regards,
Mario Gonzalez
email: mariogrealty@gmail.com
JD Power & Associates Ranked #1 Buyer Satisfaction 2008, 2009, 2010
Chase Bank Preferred Agent 2008, 2009, 2010, 2011
Short Sale & Pre-Foreclosure Certified *
REO Buyer Agent & Distressed Property Certified
DRE LIC 01708214
1 vote Thank Flag Link Fri Mar 9, 2012
It's not likely since sheriff and bank auctions usually require all cash for bids. Even if you can get qualified for a loan at bank auction, the terms would not be favorable.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Fri Mar 9, 2012
Some types of auctions may allow the bidder to get a mortgage bur your purchase is as is meaning you can not make your purchase contingent upon an inspection or mortgage. Most auctions are cash only so read the terms and ask lots of questions so you do not lose your depoist
0 votes Thank Flag Link Sun Dec 1, 2013
Ok Karen. I have changed my mind with my answer. Although your question came over a year ago, I just had an experience that may give you hope if you haven't already made your purchase and you are still looking at auctions.

Nationstar is now running ALL their short sales through Auction.com. Go to the website http://www.auction.com and look at their properties. PLEASE USE A REALTOR and complete all due diligence prior to bidding.

I just completed a sale for a VA buyer through this process and to be quite frank, it was rather painless. I felt bad for the seller and the previous buyer, but my buyer was able to purchase a home for less than listed/slightly less than market value using his VA loan.

Best of luck!

2 key points:

1) Use a realtor-one that is familiar with short sales and distressed properties
2) Use due diligence (as much as you can without spending money) prior to bidding to save yourself and everyone else a lot of time.
0 votes Thank Flag Link Sun Dec 1, 2013
No, it usually required cash to buy property at auctions.
0 votes Thank Flag Link Sat Nov 30, 2013
I would call Mario with Keller Williams, below, if I were you.
He gives a great overall answer and is very service oriented.

My answer is very short; Plain and simple: No.
And auctions can be very dangerous. EG purchasing a home w/out a full inspection.

Karen Melillo
Realty Executives N AZ
928-300-9151 Direct Cell

View some of my References or refer me at:

Integrity: No Shades of Grey
0 votes Thank Flag Link Sat Nov 30, 2013
Due to the fact that auctions normally require all CASH for bid and then to purchase, I seriously doubt it. Also, I don't think the financial numbers (terms) would not be favorable for you when considering this type of purchase. I would be more than happy to assist you with finding a home or sending you properties that are of interest of you. I can be reached at (951) 358 9906. Have a great weekend.
0 votes Thank Flag Link Sat Nov 30, 2013
What type of auction? You can only use cash at trustee sale foreclosure auctions. There are some auctions by companies like auction.com and Williams and Williams you can use financing, but it is very risky as there is no financing contingency or inspection contingency period with auctions.
Web Reference: http://www.socalvaloans.com
0 votes Thank Flag Link Tue Oct 2, 2012
I haven't heard of this ever happening and I don't see how it could.
0 votes Thank Flag Link Sat Mar 17, 2012
The only way I think of is to get a HARD MONEY LOAN first;
this would be from a private party.
Convert this to cash and take the CASH or CERTIFIED CHECK to the Auction.
Afterward, take out a VA loan and pay off the Hard Money Loan.

This would probably be hard to do, but may be possible.

Good luck and may God bless
0 votes Thank Flag Link Fri Mar 9, 2012
Hi Karen, cashiers checks only at auctions. You can get a great deal on a Standard, REO,HUD or short sale with your VA loan....

I have some listings that will consider VA buyers!

Jory Blake
Web Reference: http://theJORYgroup.com
0 votes Thank Flag Link Fri Mar 9, 2012
What I think you CAN do is pay cash at the sale and then refinance with your VA loan. Tina is right though, Trustee Auctions require cashier's check(s) to purchase.
Web Reference: http://www.lisalequire.com
0 votes Thank Flag Link Fri Mar 9, 2012
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