Getting a private lender

5 Replies

Hello BiggerPockets i ran into a serious question. I'm looking into buying a house within the next 8 months and i was wondering how i could either buy a foreclosed house or typical mortgage 

Foreclosed : Today i went to a Sheriff's sale , and i was wondering if there is a way to buy a house at a foreclosure sale without having the 20% right there and then?

Mortgage : I know the different types of loans such as FHA loans and others but the main question i have about the mortgage aspect of it is how could/would be able to put multi people on the loan ? is there a limit ?

@Ray Agosto

For a foreclosure auction, most places require the down payment in cash/cashiers checks the same day. 

You can always put multiple people on a loan, married couples, businesses etc do it all the time. The problem becomes that each person you put on the loan needs underwritten and must qualify for the loan. Can you be more specific in what you are hoping to accomplish? 

Hi @Ray Agosto

You won't be able to even bid at the sheriff sale without the certified check.

As for the mortgage, you can get co-signers on the loan to help with the qualifications. As @Christopher Blanco mentioned, they will need to each qualify individually. I believe for an FHA loan, you cannot have more than 2 people. If you have more people, it becomes an investment property, which is not what the FHA loan is designed for. @Drew Walls can you provide some insight?

@Christopher Blanco I'm trying to inquire the process of getting a foreclosed house for a live in residence, for me and my family but is there a whole process of going thou it and getting a mortgage on it later on ? Like getting a partner with the money to buy it then have him sell it to me for a mortgage ?

@Michael Lee I'm aware of not being able to bid without a certified check but can I get a certified check thou a mortgage broker for house being sold or no ? Is there any way to get around me having the money but if I wanted it for a loan ?

@Ray Agosto a mortgage broker is not going to give you a check to bid. You can try to raise the money elsewhere for the bidding purpose. You have 30 days from the auction to pay the remaining balance (the 80%). Definitely speak with a mortgage broker first before you decide to bid, and if you plan to finance it afterward.

From the Union County Website:

"The balance must be paid within 30 days. If the balance is not paid within 30 days the buyer may lose his/her deposit. Additional time is not granted to the buyer to obtain a mortgage. Parties that have not paid for their purchase after 30 days from the date of sale may be ineligible to bid at future sales. Deeds will be prepared in the name of purchaser if an assignment of bid is not received with in the first 10 days. One change in the assignment of bid will be allowed within the first 30 days. The fee is $150.00 There will be no retyped deed after 30 days."

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