if your preapproved can you buy a foreclosure that is at auction

Asked by 3boyzrfun, Lewistown, PA Tue Jun 15, 2010

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Rob Gerhart…, , Lansdale, PA
Wed Jun 16, 2010
Are you referring to purchasing a house at a sheriff sale? Contact your county sheriff or check out their website to see what the procedures are. It's slightly different in each county.

For example in Montgomery County, a successful bidder must pay 10% in certified funds immediately and then they have 10 days to pay the remainder.

You would also need to be concerned about liens that may be on the property. Buying a house at sheriff sale will remove the lien from the lender that filed suit, but there could be others. (mechanics liens, municipal liens, etc etc) Whoever buys the property is responsible for these.

Even if your getting a clean title, it's highly unlikely however that you'll be able to get a traditional mortgage underwritten and closed in 10 days, so you would have to seek alternative means of financing if you do not have the full amount in cash.

You might be better off looking at REO (Bank Owned) properties.
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Habitat Prop…, Both Buyer And Seller, Valencia, CA
Tue Jun 15, 2010
Every auction I have been to requires cash. For example, in order to bid at the auction in Norwalk, CA you need to show cashier's checks that meet or exceed your bid amount in order to even have an opportunity to make the bid.

I suggest you contact the people who run the auction you are considering participating in, but I believe you will find similar results.
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