I am looking at an REO property that does not qualify for financing. Will a hard money lender loan on these types of properties?
Hard money is financing. If the bank won't accept anything but cash then hard money won't work.
Account Closed Understood. So finding a private money lender would be the only way to purchase this property?
Is it that the seller wants all cash or is it that the property won't qualify for conventional bank financing? If the seller wants all cash then no financing will work not hml, pml or conventional ... they all require a deed of trust to be recorded at the time of closing. If seller doesn't care if it's cash or financing then hml or pml will work, or even bank financing if it's not in too bad a shape.
Account Closed It is on a auction site. It states cash only purchase. I tried to call the bank and there were closed. As far as I can see the pictures do not look to bad. I have not sent an agent in yet to review the property. I wanted to line up financing first.
California trustee sales require all cash...no financing. If you can find somebody to give you cash to buy and allow the deed of trust to be recorded after sale then that might work but this risky for the lender. Also be aware trustee sale buying is not for beginners.
@David C. That is what I am learning. This is 1 of the properties that does not come along to often. The more I research the more I start to see a clear picture here. The reward on this property might be with the risk for this new investor. Plus it will make my wife happy.
Just FYI some of the auction on line will allow for hard money we have financed many they hubzu and auction.com
@Jo-Ann Lapin Thank you. Are you familiar with Xome.com?
@Christopher Hunter were you able to finance a Xome deal with HML? I am curious to know if they do accept HML.
Unfortunately no. The hard money lending said they would be able to do it. Just needed to work out the particulars. Bidding went way above my price.