Need Help foreclosed property auction Hard Money lender.

3 Replies

HI all,

I would like to know if you can purchase a foreclosed property at auction using funds from a hard money lender. I know you need 10% down if you win the bid and most have the other 90% with in 30 days. Also if hard money lenders provide you with a loan what happens if you don’t use the money, can you just give it back? This property is a Co-op located in N.Y.C

Best regards,

I don't know what the requirements are in NY, but in Texas you have to have all the money within 30 minutes at a foreclosure sale. One of the main trustees in my city is now requiring that you have the money on you.

A hard money lender is not going to give you actual cash. When I used to use HML's for foreclosures, I would set it up with them beforehand and if I bought one, then they would call their bank and I would go pick up the cashier's check. Some HML's will charge a commitment fee if they have to hold the money, and you don't use it. Either way for quick money like that you will have to find a local HML.

Originally posted by "Ryan Webber":
I don't know what the requirements are in NY, but in Texas you have to have all the money within 30 minutes at a foreclosure sale. One of the main trustees in my city is now requiring that you have the money on you.

A hard money lender is not going to give you actual cash. When I used to use HML's for foreclosures, I would set it up with them beforehand and if I bought one, then they would call their bank and I would go pick up the cashier's check. Some HML's will charge a commitment fee if they have to hold the money, and you don't use it. Either way for quick money like that you will have to find a local HML.

I think your right about having the full purchase price at the auction. what your saying is I need to find a HML in my area, get pre-approved for the cash before the auction, and if I win go pick up the check to buy the property. If I don't use the money I just have to pay a fee. Also how much is the fee and how come you don't use HML's any more?

The HML I used didn't charge a fee, but I've heard of some that do. Sometimes a point of whatever they're holding.

Now I use a line of credit at the bank. Its cheaper and easier. Now I just call my banker and he gets a check for me.

Originally posted by "Ryan Webber":
The HML I used didn't charge a fee, but I've heard of some that do. Sometimes a point of whatever they're holding.

Now I use a line of credit at the bank. Its cheaper and easier. Now I just call my banker and he gets a check for me.

Can you tell me more about line of credit from a bank? How do you get qualified and how much credit can you get. I’m definitely serious about this and would like to purchase my first property soon.

Thanks