Home Buying in Sammamish>Question Details

Larry Mandel, Real Estate Pro in Issaquah, WA

Is any financing of a mortgage allowed when buying a foreclosed home at a public auction?

Asked by Larry Mandel, Issaquah, WA Thu Nov 13, 2008

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5
Scott..
In a trustee's sale in Washington....you own the property immediately...not in 30 days...so no..you don't have 30 days to come up with the money.
0 votes Thank Flag Link Fri Nov 14, 2008
You can certainly have a mortgage on a home you purchase at auction, you need cash for the deposit an dhave to have a pre approval, not just a pre quailification, the bank should have all of your financials, have an approval in place pending finding a home. An auction is going to require you to close in 30 days and you can not make a bid contongent on financing, so if you dont get it or close on time, you lose your deposit. make sure you do your home work before buying at cuatcio,m check for back taxes, mechanics leinsd and if there is a second mortgage. At an auction the buyer is responsible for paying these. good luck with your search
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Nov 14, 2008
Larry,

I buy foreclosures for myself and for clients and there is funding available. The agents below are right from the standpoint it does require cash and traditional lender does not provide point financing. If you do not have the cash you have to borrow "hard money". Typically the cost is 5 points plus 12% with 10-20 percent down. Obviously you want to refinance as quickly as possible and if you can with in the first 45 days of the loan you can get 1-2 points back.
Web Reference: http://www.shopprop.com
0 votes Thank Flag Link Fri Nov 14, 2008
in other words...make sure you have a cashier's check with you when going to the auction.
0 votes Thank Flag Link Thu Nov 13, 2008
Larry, a forclosed purchase at a public auction requires all funding to be done in advance. It is basically a cash deal.
0 votes Thank Flag Link Thu Nov 13, 2008
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