Looking for hard money lenders for foreclosure property.

Member since 2020 · 27 posts · 7 votes

Hello everyone

I am looking for hard money lenders to fund me to close on a foreclosure property. The property is in good shape and great area and neighborhood. The property was foreclosed by the county and auctioned it and the lender bid about 300k on it and no takers. There is about 10 day bid upset period in NC and I can bid on it and win the bid if no one else bids more than me. Else the property will be a REO. The ARV on this is about 475-500k.

Problem is I cannot get conventional financing as I don't have access to interior and a full appraisal is not possible.

An llenders can help me with funding these kind of deals? Any input is appreciated. Thank you.

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Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes

Quote from @Charwak Gummalla:

Hello everyone

Problem is I cannot get conventional financing as I don't have access to interior and a full appraisal is not possible.

An llenders can help me with funding these kind of deals? Any input is appreciated. Thank you.

If it went through the foreclosure sale and no other investor bought it I would bet you money it’s not a good deal. At least in my part of the country that would be true. I go to the tax/foreclosure sale every first Tuesday of the month here in Texas and all the good ones get picked up really quick. The only ones that don’t get sold are the ones that have no meat on the bone. $300,000 is a lot of money to risk even if you had your own cash, let alone using someone else’s money.

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 676 votes
1y
Hard money lender should be able to do this with a bridge loan no problem. Do you have flip / reno experience? If the property is not accessible for full inspection some will allow for desktop appraisal. Happy to help answer questions! Connect if you'd like!
[email protected]860-538-3672
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Steve HiltabiddlePro Member
Lender · Pennysylvania · Member since 2018 · 140 posts · 68 votes
1y
@Devin Peterson I was curious what responses might be to this question as I've had folks ask about lending on a Foreclosure at a Sheriff sale (I'm in Pennsylvania). My issue with this, again based on PA rules and my limited understanding, is you are basically providing an unsecured loan for a period of time as in PA deeds typically aren't issued for 30 days. Additionally it's extremely difficult to fully understand the condition of the property, can often be occupied, potential title issues or defects etc. While I'd be happy to cross-collateralize, often the borrower is looking for funding against the foreclosed property.
Please share how you overcome the risks I'm familiar with when lending funds for the purchase of a foreclosure.
Thanks,
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Steven LeeBusiness Member
Lender · 18021 Norwalk Blvd Suite 209. Artesia, CA 90701 · Member since 2015 · 488 posts · 43 votes
1y
Hello Charwak! How much are you planning to bid and also how much do you have for a down payment?
[email protected]800-369-7009
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Kevin Akers
Real Estate Broker · Charlotte, NC · Member since 2024 · 22 posts · 7 votes
1y
Hi Charwak!
The hard money lender could help in this situation since they are mostly. Keep in mind if this is your first property they usually require some experience and will be more expensive compared to borrowing from a bank. Just run your numbers as accurate as you can and present it to the hard money lender. If you need some lender contacts here in Charlotte and surrounding areas let me know.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Charwak Gummalla:

Hello everyone
I am looking for hard money lenders to fund me to close on a foreclosure property. The property is in good shape and great area and neighborhood. The property was foreclosed by the county and auctioned it and the lender bid about 300k on it and no takers. There is about 10 day bid upset period in NC and I can bid on it and win the bid if no one else bids more than me. Else the property will be a REO. The ARV on this is about 475-500k.
Problem is I cannot get conventional financing as I don't have access to interior and a full appraisal is not possible.
An llenders can help me with funding these kind of deals? Any input is appreciated. Thank you.

a hard money lender COULD help in these instances but there is a big if:
1. You mentioned ARV, but had no mention of current property value
2. have you physically walked the inside of the property.
3. How much skin do you have in the game?
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Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes
1y
Quote from @Charwak Gummalla:

Hello everyone
I am looking for hard money lenders to fund me to close on a foreclosure property. The property is in good shape and great area and neighborhood. The property was foreclosed by the county and auctioned it and the lender bid about 300k on it and no takers. There is about 10 day bid upset period in NC and I can bid on it and win the bid if no one else bids more than me. Else the property will be a REO. The ARV on this is about 475-500k.
Problem is I cannot get conventional financing as I don't have access to interior and a full appraisal is not possible.
An llenders can help me with funding these kind of deals? Any input is appreciated. Thank you.
If it went through the foreclosure sale and no other investor bought it I would bet you money it’s not a good deal. At least in my part of the country that would be true. I go to the tax/foreclosure sale every first Tuesday of the month here in Texas and all the good ones get picked up really quick. The only ones that don’t get sold are the ones that have no meat on the bone. $300,000 is a lot of money to risk even if you had your own cash, let alone using someone else’s money.
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