Be aware of closing requirements and time constraints. If the subject is being sold in an as-is condition, but your mortgage lender requires repairs... that could be problematic.
If your window of closing is 30 days... that, too, can be problematic.
Get your ducks in a row and conventional financing should be OK....
Ok Thank you, I work for a direct lender and I have several investors who are looking to get into the foreclosure market.
I was aware of the time constraints as far a closing on a prop, but someone told me that when you go to buy a foreclosure home you have to have a cashiers check.
Hey did you go to Ocean Twp High School, I graduated there in 1988?
OK, now semantics rears back it's ugly head. If you mean by "foreclosure property" property that is exposed to public auction... then you may well need certified funds either immediately following the auctiion... or within a staturoty time period. If you are speaking about property in the foreclosure process, but still owned by the mortgagor... then conventional finance is OK. It's also OK if you are purchasing REO.
No, I didn't attend TOHS, but I drive past it everyday. My daughter graduated last year.
Ok, so what your referring to is a "Pre-foreclosure" which is when a foreclosure was filed, but has not been sold @ a public auction?
If so how does that work? As I mentioned, I am a loan officer, but I have never worked in this sector of the market. My knowledge is minimal, which is why I am on this site. Thanks so much for your help.
I have bid $5000 on the property which I guess covers the HOA dues ... assuming I win the bid, do I then assume both loans i.e start making payments on both first mortgage and second mortgage
Also please clarify whether a "subordinate Deed of Trust" can usually be interpreted to mean a seond mortgage
Good to see you in the game of real estate investing and you will find TCI to be a wealth of information. Using TCI's search tools will be of great help as well.
Financing foreclosures is a specialized area of mortgage banking and you need to search them out in your area. All require you to be preapproved, what I am stating you must have the money ready to play, as many want the funds in full the same day or in 24 hours. If you do not have the ability to have cash, you will need to seek out a money partner.
Dealing with REO's on the other hand you normally will have more time for funding.
Dealing with preforeclosures is simply dealing with a homeowner in financial distress but allows for a host of creative transactions.
[addsig]
You can deal with foreclosures prior to the sale and no finances by using many different strategies by using equitable title holding trust, subject to and the list can go on. At this point, you should look into some form of training such as subject to as this is the easiest way to jump into the game when money is an issue.
You can not learn creative strategies from a few posts on a forum; it's time to take it to the next level.
[addsig]
Sure, why not?
Be aware of closing requirements and time constraints. If the subject is being sold in an as-is condition, but your mortgage lender requires repairs... that could be problematic.
If your window of closing is 30 days... that, too, can be problematic.
Get your ducks in a row and conventional financing should be OK....
Ok Thank you, I work for a direct lender and I have several investors who are looking to get into the foreclosure market.
I was aware of the time constraints as far a closing on a prop, but someone told me that when you go to buy a foreclosure home you have to have a cashiers check.
Hey did you go to Ocean Twp High School, I graduated there in 1988?
OK, now semantics rears back it's ugly head. If you mean by "foreclosure property" property that is exposed to public auction... then you may well need certified funds either immediately following the auctiion... or within a staturoty time period. If you are speaking about property in the foreclosure process, but still owned by the mortgagor... then conventional finance is OK. It's also OK if you are purchasing REO.
No, I didn't attend TOHS, but I drive past it everyday. My daughter graduated last year.
Ok, so what your referring to is a "Pre-foreclosure" which is when a foreclosure was filed, but has not been sold @ a public auction?
If so how does that work? As I mentioned, I am a loan officer, but I have never worked in this sector of the market. My knowledge is minimal, which is why I am on this site. Thanks so much for your help.
I have bid $5000 on the property which I guess covers the HOA dues ... assuming I win the bid, do I then assume both loans i.e start making payments on both first mortgage and second mortgage
Also please clarify whether a "subordinate Deed of Trust" can usually be interpreted to mean a seond mortgage
Hi christopl,
Good to see you in the game of real estate investing and you will find TCI to be a wealth of information. Using TCI's search tools will be of great help as well.
Financing foreclosures is a specialized area of mortgage banking and you need to search them out in your area. All require you to be preapproved, what I am stating you must have the money ready to play, as many want the funds in full the same day or in 24 hours. If you do not have the ability to have cash, you will need to seek out a money partner.
Dealing with REO's on the other hand you normally will have more time for funding.
Dealing with preforeclosures is simply dealing with a homeowner in financial distress but allows for a host of creative transactions.
[addsig]
Thanks John!
Let's assume I do not have a "cash" partner, yet...How can I get involved in buying forclosures prior to them being sold at an auction?
How would the process and the financing work, would I be assuming the loan, or getting another loan to pay off the Mortagee's defaulted loan?
Thank you.
You can deal with foreclosures prior to the sale and no finances by using many different strategies by using equitable title holding trust, subject to and the list can go on. At this point, you should look into some form of training such as subject to as this is the easiest way to jump into the game when money is an issue.
You can not learn creative strategies from a few posts on a forum; it's time to take it to the next level.
[addsig]