Auction Lenders?

Question

Does anyone know of any lenders that will lend for Courthouse auctions?  I've been told there are some out there if your intention is to flip the house rather than make it a personal residence.

Anyone have any insight to this?

-Thanks

Melissa G. · Answer

Where I live (MD) you don't have to close right then and there, but you do have to have a predetermined deposit in cash or a cashier's check.  
Settlement is still an issue if the homeowner is still in the house b/c they won't let you in to do the inspection and appraisal that is required by the lender in order to settle.  That's why auctions generally go to investors with cash as opposed to someone who wants to buy for themselves.  Our local bank is willing to give us a short term loan until we can evict and do the necessary paperwork.  Fortunately, we have more than half of the loan in cash so they're willing to work with us.

Will Barnard · Answer

In many states, you are required to have cash in hand, in the form of a cashiers check inorder to bid on these properties and to purchase them. In many cases, financing is out of the question because you are required to close right then and there. Title is often transfered that day, can't do that with financing contingencies.
HML or private financing may be an option. Keep in mind that I am not familiar with your states rules and guidelines on this matter.