FORECLOSURE FINANCING...

[Takunda1]

Is it possible to get financing to purchase a foreclosure home? I'm talking about being able to go to the court steps and bid on a property knowing you already have financing lined up. I've never heard of it so I thought I'd ask here.

[ShanetheMortgageMan]

Usually courthouse step auctions require a deposit to be paid if you are the winning bidder, and then within 24-48 hours the remaining funds are due.  Even with a full pre-approval, after the offer is accepted it still takes at least a week to get everything done... so it'd all just be a matter of the time that you need to pay the full amount to the court after your winning bid is accepted.  Between the time you get a full pre-approval, an offer is accepted, and you close... an appraisal needs to be done, title search needs to be performed, insurance policy set up, underwriter needs to review all of that documentation, bank needs to be prepare the closing docs, and an appointment with the escrow/title/closing attorney needs to be made for you to go in and sign.  

[Takunda1]

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@ShanetheMortgageMan wrote:
Usually courthouse step auctions require a deposit to be paid if you are the winning bidder, and then within 24-48 hours the remaining funds are due.  Even with a full pre-approval, after the offer is accepted it still takes at least a week to get everything done... so it'd all just be a matter of the time that you need to pay the full amount to the court after your winning bid is accepted.  Between the time you get a full pre-approval, an offer is accepted, and you close... an appraisal needs to be done, title search needs to be performed, insurance policy set up, underwriter needs to review all of that documentation, bank needs to be prepare the closing docs, and an appointment with the escrow/title/closing attorney needs to be made for you to go in and sign.  

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Thanks for this info Shane, I guess we will buy the old fashioned way :-)

[Uborrow-Upay]

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@Takunda1 wrote:

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@ShanetheMortgageMan wrote:
Usually courthouse step auctions require a deposit to be paid if you are the winning bidder, and then within 24-48 hours the remaining funds are due.  Even with a full pre-approval, after the offer is accepted it still takes at least a week to get everything done... so it'd all just be a matter of the time that you need to pay the full amount to the court after your winning bid is accepted.  Between the time you get a full pre-approval, an offer is accepted, and you close... an appraisal needs to be done, title search needs to be performed, insurance policy set up, underwriter needs to review all of that documentation, bank needs to be prepare the closing docs, and an appointment with the escrow/title/closing attorney needs to be made for you to go in and sign.  

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Thanks for this info Shane, I guess we will buy the old fashioned way :-)

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You're not missing much, Takunda1.  You'd be overpaying at the courthouse steps, unless the property has not been refinanced in the last 12 years or so.  Your bid would have to exceed the outstanding balance of the first mortgage, which would probably be more than the current market value of the property.