Foreclosure in 94588>Question Details

Barbara Thor…, Home Buyer in Pleasanton, CA

What are the procedures to purchase bank owned notice of trust, notice of default, short-sale, and?

Asked by Barbara Thornton, Pleasanton, CA Wed Dec 19, 2007

foreclosures.

In addition, using a hard money loan is it necessary to have a downpayment and why? what's the time frame of loan approval.

Thanks,
Barbara

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Most hard money lenders have tightened their standards and now require that the borrower qualify for hard money loans. Current qualification typically consists of the borrower posessing a credit rating of, say 625+ and posess a predefined amount of liquid assets, typically $20K to $50K or a percentage of the amount being loaned (20% or so). Many also now require that the borrower have "skin in the game" in the form of a down payment, and will not loan more that 65% - 70% of the properties value. Of course, the note must be secured by the property and the lender will rarely accept a 2nd or lower position.
1 vote Thank Flag Link Sun Dec 23, 2007
Go to my website which is 100% dedicated to foreclosures ..... check the buyers resources area for info on buying foreclosed homes.
thanks,
Tom
0 votes Thank Flag Link Wed Nov 5, 2008
Barbara,

The procedure is basically the same for purchasing bank owned, short-sale, etc properties. However, the offer (purchase agreement) needs to be approved by the bank that has the loan on the property. In our experience with these and depending on the bank, that may take a week to months!

A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds based on the value of the real estate. Hard money loans are typically issued at much higher interest rates than conventional loans. Now, the question of downpayment and time frame of approval will depend upon the particular lender. Please contact me and we can put you in touch with a number of lenders that offer a variety of choices.

Best Regards & Happy Holidays!
Nahid Monahelis
Web Reference: http://www.nahidsellsre.com
0 votes Thank Flag Link Wed Dec 19, 2007
Typically, these sales are handled just as a normal sale, however Purchase Agreements need bank approval and usually on thier purchase agreement, and that can take anywhere from a few days to months to get an answer back on. The inspection window if there is one is sometimes tightened up, also. I'd get a realtor involved to represent you that has experience in this sort of transaction, for sure. Oh, and these properties are sometimes sold "as-is". Other than that, they are reasonably similar to the typical resale transaction.
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Wed Dec 19, 2007
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