Won an Auction and hard money requires interior pictures of the property.

[Rogelio Molina]

I just won the bid at a foreclosure auction and submitted my $5,000 deposit and signed the foreclosure sale agreement and we are closing in 30 days. The issue is the bank (seller)  has expressly forbidden me from accessing the property until deed is transferred. The big issue is Hard money lender requires interior pictures.

Can I change my lender and have another one who doesnt require visiting the property?

I know it's in solid condition and has MLS history from 4 years ago, visited outside and seems to be pretty nice!

This is in San Antonio Texas.

[Jeff S.]

“I know it's in solid condition …”

If you’ve never been inside, how can you make this claim, @Rogelio Molina?

“… visited outside and seems to be pretty nice!”

This is a risky standard, Rogelio. We’ve lent on countless hoarder homes that looked fine from the outside but were disasters inside. Forget your lender for a moment. How are you protecting yourself from buying a pig in a poke? Experienced foreclosure buyers bid low enough, often 50 percent of ARV or less, to cover hidden surprises.

We walk through every property we lend on, not foreclosures. For the few homes we can't access, we don't lower our LTV. Instead, we increase the estimated rehab expenses to 20 to 25 percent of ARV. Even then, the deal must still pencil out. (Not a solicitation. We don't lend in TX.)

I’m confused by your lender. If they’re experienced in foreclosure lending, they should know it’s common not to inspect the interior. (And, with AI now, what lender accepts photos?) Consider a lender who specializes in these properties.