Lending for commercial and residential foreclosure property.

Columbia, South Carolina
Private Lending & Conventional Mortgage Advice
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Lending for commercial and residential foreclosure property.

Charwak Gummalla
Member since 2020 · 27 posts · 7 votes

Hello everyone. 

we are looking to financing a commercial and residential foreclosure property. 

we bought this property through county judicial foreclosure process. We paid 5% of the bid amount when we won and we are required to bring the remaining amount by feb 25th. Since we don't own the property yet, we cannot enter the property and have interior access. Drive by is OK. Once we have the deed, we become official owners and have interior access. 

we are looking to get around 350 to 400k funding for these two properties. 

we only have 20 days to get funding .

More than happy to share details on phone. 

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Steve HiltabiddlePro Member
Lender · Pennysylvania · Member since 2018 · 140 posts · 68 votes
8mo

@Charwak Gummalla  I do think this is a tough ask for anyone who knows what they are doing regarding lending.  No access to the property, Deeds, at least in my state, can take a month or so to be recorded so Title insurance wont be available.  As @Mike Grudzien asked, did you have funding planned before or were you winging it?   

I wont lend on Foreclosed property but would provide lending to an Investor after they purchased it and the Deed was recorded and property could be viewed, basically refinance the Investor out.  But I dont think its something a knowledgeable lender would do.

Good luck,

Steve

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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 679 votes
    8mo

    Lots of options here should be no problem check out the find a lender tab

    [email protected]860-538-3672
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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    8mo

    Did you already have lender relationships and a plan going into this foreclosure bid process?
    What happened and went wrong?

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    8mo
    Quote from @Charwak Gummalla:

    Hello everyone. 

    we are looking to financing a commercial and residential foreclosure property. 

    we bought this property through county judicial foreclosure process. We paid 5% of the bid amount when we won and we are required to bring the remaining amount by feb 25th. Since we don't own the property yet, we cannot enter the property and have interior access. Drive by is OK. Once we have the deed, we become official owners and have interior access. 

    we are looking to get around 350 to 400k funding for these two properties. 

    we only have 20 days to get funding .

    More than happy to share details on phone. 


     This will be tough to finance a commercial property without an appraisal. You may need to reach out to a local family fund or private investor to get this financed for you. 

    [email protected]818-269-7983
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  • Steve HiltabiddlePro Member
    Lender · Pennysylvania · Member since 2018 · 140 posts · 68 votes
    8mo

    @Charwak Gummalla  I do think this is a tough ask for anyone who knows what they are doing regarding lending.  No access to the property, Deeds, at least in my state, can take a month or so to be recorded so Title insurance wont be available.  As @Mike Grudzien asked, did you have funding planned before or were you winging it?   

    I wont lend on Foreclosed property but would provide lending to an Investor after they purchased it and the Deed was recorded and property could be viewed, basically refinance the Investor out.  But I dont think its something a knowledgeable lender would do.

    Good luck,

    Steve

    1Reply
  • Nicola Mislinski
    Lender · Charleston, SC · Member since 2025 · 35 posts · 4 votes
    8mo

    @Charwak Gummalla have you finalized funding on this? Have an option to get this done quick

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    8mo

    Typically for a foreclosed property you'll need to get two appraisals done. One being an external appraisal only, and then once you acquire the property you will need to get another appraisal done at that point in time to confirm the value. We have done this many times and typically we hold a reserve at closing until the interior appraisal is completed and then release those funds. For example, if the purchase price you're bidding was $500,000 and needed $100,000 to renovate, we would typically give 50- 60% of the acquisition and hold 10 or 20% in reserve (so it's 70% but holding more back due to potential condition) until an interior appraisal was done. If the value came back okay, that 20% would be released and then you would just go on with the construction draws. 

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