I think you need a new lender. It sounds you have been approved for an FHA loan which requires the 3.5% down payment you mention. The problem of course is you don't have it. You need $5,250 "down" PLUS your closing costs. Did you actually speak with someone??? You can have a down payment "gifted" according to FHA guidelines and ask the Seller to pay for your closing costs. Was any of this discussed???
Maybe a new lender who will consider your situation and offer solutions is in order.
Hope my contribution is not too late...just seeing your question.
Foreclosue sale date is 1st Tuesday of each month throughout Georgia, on respective County Courthouse steps, starting at 10AM. Most attorneys handling a sale will disclose the BID AMOUNT ahead of sale and some even post this info on their websites. Call the attny's office, even early morning on day of sale and try to get this info. Decide the absolute maximum you would be willing to spend on this property then go to your bank and get certified funds; one for bid amount plus several others in various smaller denominations, to get as close as possible to final bid amount. Attnys will also take cash for all of sale amount or a combination of cash/certified checks. They will mail you any overage should you not have exact change for bid you won.
MOST IMPORTANTLY: Verify property info ahead of sale!!! Be sure that the FIRST MORGAGE HOLDER is the bank foreclosing!!! If you buy that HELOC and there's an existing first mortg, congratulations...you now own that first! Also verify any property taxes or IRS tax liens owed, water bill (these can be large also)...avoid surprises. Secondary liens such as 2nd loan HELOC and HOA dues will fall off with foreclosure sale.
CEO, Smart Homes Investment Properties, Inc.
Licensed Real Estate Consultant, Solid Source Realty GA