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,
KELLER WILLIAMS REALTY
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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.
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.
Realty Executives N AZ
928-300-9151 Direct Cell
View some of my References or refer me at:
Integrity: No Shades of Grey
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
I have some listings that will consider VA buyers!