Probably the only way to do this is to buy the property "subject to" the original financing. This basically means that you will gain deed to the house, but you don't get a new mortgage because you will just make payments on the mortgage that would otherwise go into foreclosure.
Probably the only way to do this is to buy the property "subject to" the original financing. This basically means that you will gain deed to the house, but you don't get a new mortgage because you will just make payments on the mortgage that would otherwise go into foreclosure.
What about a bridge loan, do they require inspections before the loan?
It all depends where the foreclosure is in the "process". At the courthouse steps usually requires "cash". No financing, etc... If it's a bank REO, no problem. Conventional financing usually works (depending on credit score of course). I don't know what everyone else thinks, but I think the typical stories of foreclosures being totally trashed are a little
over-reactive. Yes, the lender will require an appraisal. But if the home is in "habital" condition, it's a done deal. That's not to say that their aren't nightmare stories out there.
All in all, you definately can get financing on foreclosures just as long as a "scud missle" hasn't ripped through it.
I'm talking about buying the property at an auction. Where I live 20% cash down is required at the close of auction and the rest has to be put down within 30 days. My question is if I put down 20% cash can I get a mortgage or loan without the inspection reports for the rest or at least part of it.
Many lenders will want to at least get an inspection of the property before it goes to auction and this my be difficult. The sheriff in my county refuses to take investors inside the building so you will either have to contact the owner (the best way) or hire a locksmith (not recommended as this may be "bending" the rules in your area).
But... if you can get the inspection before it goes to auction then you should have no problem closing within 30 days.
I'm confused now, so you can't buy a foreclosure home unless you pay cash first and then get a loan? I thought you could get a loan on foreclosures....
Justice, read through this entire thread. As you get closer to the public auction it becomes difficult to get a loan for a property. After the auction if a bank buys the property back you can always make an offer to them and get a loan... but in these cases the bank will hold out for more money whereas in a short sale situation you can more easily negotiate for a lower price.
As an alternative to getting a loan for youself you can offer to buy a house "subject to" the original loan. As long as there is equity in the property this is a way to get a healthier return on your investment.
There is a way to obtain the mortgage on a foreclosure property other than buying the property sub2 or even at the court steps. This option is to buy the actual mortgage NOTE. The house is being foreclosed on for a reason, the mortgage is in default. It is owned by an investor who after trying to get the owners to bring the mortgage current has decided to foreclose. This investor has one of two potential outcomes, A: that the property will sell at auction for more than he bought the mortgage for, or B: that it wont sell and he takes title to the property.
Typically the investor has purchased the mortgage at a discount. Usually its less than what it would cost to buy the property at auction.