Money for foreclosure in FL

Foreclosures, Short Sales, Tax Foreclosures
1

I’ve been receiving the Daily Bussines Review. It comes with a list of foreclosed properties to be auctioned off, usually the auction date is about two to three weeks from the date I receive the newspaper, which is I guess the public notice date. Usually there’s a property assessed value and the amount owed to the creditor. They also require that the buyer have all the cash the day the property is sold. Sometimes, I am interested in these properties and want to go and try and bid on them, however I have no money, nothing at all. Just used my saving to buy a land, closing date is soon.

My Questions are ,
where do I get this cash to pay for the property, which could be anywhere from $100K to 200K?

Can I find somebody who will let me borrow all that money in cash (100% financing), then I can refinance the property and pay them back?

Even if I can find somebody or a lender who’s willing to do 100% financing, but the whole deal must be done withing a short time, since I’ll know of the property only two weeks in advance.
and even if I don’t win the property at auction, can I return the money, maybe, paying a penalty fee?

Am I missing something because this concept seems to easy to be plausible?

anybody have any experience`doing this.

2

Howdy Doyna:

Hard money lenders are your best bet. They do not look at credit as much as the property. They generally loan 65 to 70% of the value of the property after repairs. Mine will loan 95% of the total costs unless it is a super duper deal at about 60% then they will loan 100%.

They charge high rates of interest around 14% and high points around 5 % plus they will generally want money for being at the auction with the funds available. Again I had one that would show up for $1000 up front fee non refundable. On a deal like that I would try to have more than one deal you want to do just in case something happens to one you may still be able to get a second or third chance. The owner could file BK or another investor cure the default etc before the sale. I have cured many at 9 am before the trustee sale at 10 am.

The best way to buy is before the sale. Contact the owner and get the deed and cure the default with the few thousand needed instead of paying cash at the sale.

Do title searches to make sure what you are getting before giving the seller or the mortgage company any money.

Hope this helps some