Foreclosure financing in NJ

4 Replies

Hi everyone wondering if anyone can help with a question- looking through foreclosure properties in NJ but wondering about financing. Do banks typically provide financing on foreclosed properties? Or would you need to find private financing and then aim for a refi several months later with a traditional lender?

@Nick M. Your best bet may be a Hard Money or Private Money lender, but make sure the deal is solid and you may want to have an LLC established as many HML's lend to an LLC but not an individual this will give you access to the widest array of lenders

Originally posted by @Nick M. :
Hi everyone wondering if anyone can help with a question- looking through foreclosure properties in NJ but wondering about financing. Do banks typically provide financing on foreclosed properties? Or would you need to find private financing and then aim for a refi several months later with a traditional lender?

 In NJ, the answer is probably the second one. Houses sit vacant for a long time in NJ (vs other states) - this causes issues that most traditional banks will want fixed prior to closing. You don't want to fix up someone else's house. So figure out a way to buy it, fix it, then you can sell, rent, or live in it.

However, traditional banks won't dismiss lending on a property solely because it is a foreclosure; they would dismiss it because of bad condition.