Questions On Closing And Insurance
1. In a non-redemption situation, what have other's experienced as the amount of time from foreclosure auction to actually closing on the property?
2. Are there any particular difficulties getting property insurance on a house bought at foreclosure auction?
Where I come from, usually when you buy a foreclosure you are issued some kind of deed (state, quit claim, sheriff's certificate) at the sale, as soon as you hand over the cash. Then you walk it over to the courthouse and record it. Hopefully you've done enough research on title condition that you're getting your money's worth, because there's usually no backing out.
If you bought it you have a valid, insurarable interest, redemption or no. Doesn't mean it will be easy to insure. If you don't or can't insure it with the same company as your own homeowner's insurance (e.g., if you're buying as and LLC or diff entity, or if it isn't inhabited or is run down and doesn't meet your company's min. criteria, etc.) you may have problems. Keep looking.
Some states have a 'state pool' for dwellings that aren't eligible for regular insurance. Ask your Dept. of Commerce about it. Some of those that do allow investment properties like yours in the pool. It's expensive, but they don't ask as many questions, and if you're flipping fast you may be able to get most of your premium refunded at sale when you cancel it.
May want to check with an Agent that reps Foremost or American Modern (AMIG/Midland).