money to buy a sheriff sale?

In my state you have to have the full bid amount by 1:00 the day of the bid. How do you set up financing to buy at a sheriffs sale? Will banks loan on these types of purchases? How does that part all work? thanks for youre help.

I don’t think you will find a bank or traditional lender that can help you here, unless your credit/finances are so strong that they will set you up with an unsecured line of credit or a line of credit secured by something else (your home perhaps?). There just won’t be enough time to assess the property as collateral to get a loan on it in a few hours. Even if you knew the address in advance, etc., most traditional lenders will ask for a sales contract to get the ball rolling, and you won’t have that.

If you know the address in advance, you could talk to a hard money lender and try to get a pre-approval of sorts, but even then I’m not sure how that would work in an auction environment. You should probably just call a hard money lender (a few, actually) and see what they can do for you. At the very least, they can tell you what your options are.

You might be able to find an investor who will give you a 45-day loan to acquire the property with the idea that he will be repaid when you refinance with a bank. One thing that many real estate investors do is build their own “private bank” by having access to investors willing to loan them money. You can offer, say, 1 point/12% for the 45-day loan, which will get you the property, and that’s a nice 20% yield (annualized) for the investor. If you’ve ever seen classifieds that say, “Want to earn 12% to 15% secured by real estate 75% LTV?” you now know what they are doing with the money.

You could also set up a line of credit secured by another investment property if you have the equity.
Good Luck (*)

Good luck getting the property refinanced after the sale since you would be getting a sherrifs deed, which is a non-warrenty deed. Not too mention the redemption periods could be as much as 3 years which would be a long time to be paying on a property and not able too sell untill redemption period is over. What state r u in?

I am in PA. there is no redemption period. What are my options to get money in hand to bid at the auction. thanks

I was going to suggest the same. Get a HELOC, deposit it in your account and let it clear. Win the auction and hightail it to the bank and get a cashiers check.
Or there’s always the armored car on the way to the auction… 8)