Property Q&A in Garfield>Question Details

Yob-b-, Home Buyer in Huntington Beach, CA

Can I get prequalified for a loan and use that loan amount to bid at an auction?

Asked by Yob-b-, Huntington Beach, CA Fri Sep 28, 2012

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Good morning Yob,
The bloggers in this panel are very right on their answer and as the stated many different type of actions but the most common (95) of the time, cashier check n hand. or yes, you can be per-approved and proof of assets BUT is up to the auctioneer's time frame for you to close the transaction (very risky due to unforeseen events and you can lose your initial deposit plus commission).
On the other hand actions are quick sales (sellers are not waiting or babysitting transactions).
I do home buyers seminars every month at Kinecta Federal CU and show the different options and loan programs as well our benefits and rebates (best in the industry **call me to proof it).
If you need guidance and per-approval good for ninety days:

Libardo Quintero
NMLS 380933
0 votes Thank Flag Link Sat Sep 29, 2012
No, unfortunately that won't work. There are several different TYPES of auctions here in California. You need to research what type you are planning on attending. MOST ALL auctions require you to bring a cashier's check for the total dollar amount you plan on bidding. This means you need to do your research PRIOR to attending the auction, preview the home, check out the title for possible liens, preview the home for structure defects and make sure to check the tax rolls to see if they are current, all of which you will be responsible for. It's not just the loan that you must pay.

BUYER BEWARE ... buying a home at an auction is a little more complicated than purchasing a home through a realtor!

I recommend that you find a realtor you can work with, and work together as a team. THEN you will have access to information that you don't have now. It doesn't cost you a thing to have an agent assist you. In fact, a knowledgeable realtor can save you so much money that you couldn't do yourself. Knowledge is king when it comes to auction...there is just NO SUBSTITUTE for it. Good luck!
0 votes Thank Flag Link Fri Sep 28, 2012
Hi Yob-b,
It depends on the type of auction. If it's a seller of a single family home, they control the auction and will specify how they want payment. Any auction will have their rules stated. Investors will have cash. Ask your lender if you qualify for a non residential loan (Short Term) and then convert it to a mortagage.
Tax auctions are stated with the county tax assessor. Takes alot of homework.
Best Wishes to you,
Diane Geraud
Windem Real Estate
Direct: 714/396-5955
0 votes Thank Flag Link Fri Sep 28, 2012
No! You need cashiers checks to bid at auctions. However At they do have available Financing on site. and there are hard money lenders out there that will loan as well.
0 votes Thank Flag Link Fri Sep 28, 2012
Yes, you can. will require you to be pre-qualified, and they will need to see proof of that. There will be other criteria that will have you verify, and once you purchase the home at auction, you cannot back out due to financing. So make sure your pre-qual is solid! If you win the auction and then back out, your deposit will be non-refundable.

Cash is only required at the auctions that take place on the steps of the courthouse, not for auctions. They are very different.

Good luck!
0 votes Thank Flag Link Fri Sep 28, 2012

As Deborah mentioned you cannot get a loan to bid at the auctions, although there are several different things you can do if you have some cash. At the auctions you need to have certified checks ready to purchase, the competition is fierce.

Call/text/email me if you have any further questions. Oh and by the way it's hassle FREE information.


Alex Vargas
Weichert Realtors
(714)-269-8775 Mobile
0 votes Thank Flag Link Fri Sep 28, 2012
It's Doubtful - This property is already bank-owned. It was foreclosed in March 2012. Typically auctions are for CASH only. That means you would go to the auction with a fist full of Cashier's Checks for differing amounts so you can provide enough money to support the winning bid. The bank took this one for $522,000.
Good luck !
0 votes Thank Flag Link Fri Sep 28, 2012
Hi Yob-b,

Unfortunately, no you can't. In order to bid at an auction you must have cash. I can, however, assist you in finding a home that you can pruchase with your financing. There are several options available including short sales. Contact me if you are interested.

Deborah Linden
Prudential CA. Realty
0 votes Thank Flag Link Fri Sep 28, 2012
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