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Updated almost 10 years ago on . Most recent reply

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Gaurav S.
  • Homeowner
  • los angeles, CA
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Only cash only can buy at auction - Is this true ?

Gaurav S.
  • Homeowner
  • los angeles, CA
Posted

First time home buyer. Trying to get good deal. Was thinking of buying home at auction(with help of some agent).Talked to an agent and he said he helps people bid on short sales.

He said the banks are not willing to sell house to people who need financing since lots of cash buyers available. Is that true ? If I pay the deposit at the auction and arrange for financing within 30 days.....even then will the bank prefer to sell it to the cash bidder ?

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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Not sure how sheriff sales work in CA. Here in Colorado, you have to pay cash on the spot. If you're getting financing, then lender has to be there with you with cash in hand. No conventional lender will do this, but I know at least one hard money lender who will.

You're better off, in your position, making offers on REOs. Properties the bank already took back at the sheriff's auction. Look at a LOT, dozens, even 100. Make a lot of offers. Eventually you will buy one. Last one I bought, I would look at about 10-12 houses each weekend and make 3-4 offers. Eventually I had two accepted, one a REO and one a short. But the lender never approved the short. I bought the REO.

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