Auction Financing

CapitalismWorks_IHB

CapitalismWorks_IHB

New member
I am considering attempting to purchase a home at an upcoming auction, however I do not have sufficient cash for the purchase. Is anyone aware of financing sources for trustee sale purchases?
 
[quote author="CapitalismWorks" date=1253423849]I am considering attempting to purchase a home at an upcoming auction, however I do not have sufficient cash for the purchase. Is anyone aware of financing sources for trustee sale purchases?</blockquote>
Only a hard money lender will even consider providing you financing. No bank or direct lender will touch it. If you have some properties in mind, PM me and maybe I can help you out.
 
Also keep in mind that most lender will not allow you to get a cash-out loan from purchasing a property at the foreclosure auction for 3 to 6 months after the purchase.
 
[quote author="CapitalismWorks" date=1253481083]Thanks everyone. This confirms what I had guessed, that banks are not setup for this type of business.</blockquote>
Seriously, all you need is a bridge loan until you can obtain regular financing. Doncha think?
 
[quote author="awgee" date=1253481758][quote author="CapitalismWorks" date=1253481083]Thanks everyone. This confirms what I had guessed, that banks are not setup for this type of business.</blockquote>
Seriously, all you need is a bridge loan until you can obtain regular financing. Doncha think?</blockquote>


I am not sure about the collateral requirements. Ideally, as you point out, this would end up being short term financing.
 
[quote author="awgee" date=1253481758][quote author="CapitalismWorks" date=1253481083]Thanks everyone. This confirms what I had guessed, that banks are not setup for this type of business.</blockquote>
Seriously, all you need is a bridge loan until you can obtain regular financing. Doncha think?</blockquote>
But what lender will provide you a bridge loan unless they have collateral? I mean, they can lend you the money but it's not for sure that you'll get the property even if you have the money (so the loan becomes an unsecured loan).
 
[quote author="USCTrojanCPA" date=1253517632][quote author="awgee" date=1253481758][quote author="CapitalismWorks" date=1253481083]Thanks everyone. This confirms what I had guessed, that banks are not setup for this type of business.</blockquote>
Seriously, all you need is a bridge loan until you can obtain regular financing. Doncha think?</blockquote>
But what lender will provide you a bridge loan unless they have collateral? I mean, they can lend you the money but it's not for sure that you'll get the property even if you have the money (so the loan becomes an unsecured loan).</blockquote>


A friend or relative.
 
[quote author="awgee" date=1253518209][quote author="USCTrojanCPA" date=1253517632][quote author="awgee" date=1253481758][quote author="CapitalismWorks" date=1253481083]Thanks everyone. This confirms what I had guessed, that banks are not setup for this type of business.</blockquote>
Seriously, all you need is a bridge loan until you can obtain regular financing. Doncha think?</blockquote>
But what lender will provide you a bridge loan unless they have collateral? I mean, they can lend you the money but it's not for sure that you'll get the property even if you have the money (so the loan becomes an unsecured loan).</blockquote>


A friend or relative.</blockquote>
True, but I think if he had friends and/or family that could help him he might not have posted this thread.
 
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