how do these #'s look

$319,000 owed … house built in 2003 first owner, perfect shape, interior paint touchup
$5400 municiple leins

comps 379, 000 - 409,000

identical home next door, same spec’s for sale now for $415,000

… im looking to flip…
anything im missing let me know…what’s the best way to finance this with the least amount out of pocket…should i do an interest only? … me and my wife both have 700 credit scores

You might be able to finance form 90 to 100%. Virtually no money down. I would have to get more info from you. Some lenders you can do stated income/assest. Or you might be able to do an 80-20. It would all depend on you scenario.


can you take a loan amount higher than the purchase price on a foreclosure, as long as the ltv is there?

When you go to the foreclosure sale you have to have a cashier’s check available to pay for the property. After the sale is complete you can refi and pull cash out.
I hope this answers your question. If it doesn’t please explain in more detail your question.
Thank you,

Foreclosure proceedings and requirements vary from state to state and even within counties of a particular state.
I would suggest going to one or 2 sales as an observer before expecting to show up and buy your first property. Also, you may want to consider that if the property actually is auctioned off that other bidders will bid up the price. I’ve seem properties go for more than I would pay for FMV from the MLS. Desirable properties are often sold for around 75% - 90% of FMV.

In the NJ counties I’ve attended you need to provide 20% down IMMEDIATELY upon being the winning bidder using certified funds. Most experienced bidders bring multiple certified checks in various increments that add up to 20% of the maximum they are willing to bid. This is because you want to give the least possible to the sheriff’s office since if the property is redeemed by the owner within the 10 day redemption period it takes several months to get your money back (no interest paind by sheriff office)

The balance is due in certified funds 10 business days after the sale (assuming it is not redeemed). Neither the mortgage company nor the sheriff department cares where/how you got the money.

Although I’ve never tried getting a mortgage for a sheriff sale property I think it’s a safe assumption the you will find reluctance to lend from “nornal” mortgage companies. This is because in my experience sheriff properties are sold “as-is”, usually you can not get into them to get them appraised and there is no guarantee of clear title - all stuff normal mortgage companies require.



Wouldn’t you just do a Title search before you bid on the property?

I’m very interested in foreclosures as well. I found a property that is starting around 180k but is valued at around 300k. The county needs 10% down and the rest paid in full 6 days after . How would this work trying to get a loan? Is it possible to get it appraised and the loan closed in that short of time? Or can they do a drive bye appraisal?


this isn’t my first auction property…i was asking a " finance" question… i already have the property…$1 over the bank owed amount…

So how exactly did the loan process work? Appraisal, down payment to county, and balance?

Did you do a title search before you got it?

im in the loan process now…i was just wondering if you can take money out over the purchase price…anyway…around here…you have 30 day’s to make final payment ( or mortgage ) the property… … i needed $5000 to bid on it…muncipal leins will be paid on closing…it’s a newer property built and finished in late 2003, one owner, 1st mortgage, no second…i have gotten auction properties before and had an extention on the 30 day’s…i’ve never had a probelm wit it, although everyone is different…im hoping to close on this one in a few weeks, and put it on the market for 399,000

Most mortgage companies loan based on the purchase price but some lenders including Private lenders base it off LTV. But in this specific case it doesn’t seem like it would work because most do 80% LTV loan.

Say the property is appraised for 400k the lender would then loan you 80% which is 320k. Doesn’t really help in this case since the purchase price is 319k +. But I’m sure you can see where it does help in certain cases.

Good luck with the closing, seems like you will make a nice profit. Are you doing a 1031 exchange?

It’s true that the loan amount is based on LTV, however there are lenders that would do non owner occupied from 90% to 100%.

Who does that? The best I’ve found so far was around 80% LTV after repair value.

I know of lenders that do 90-103% of purchase price but not LTV.

Do you have a source?