i am looking into purchasing a property at a sheriff sale. If i am the highest bidder i will recieve a sheriffs deed for the property. Is there anyway i can get a full waranty deed for this property after the sale?and title insurance? Also, is it hard to refinance with a sheriffs deed since i will be using hard money to purchase and would need to do that.
Thanks
many states have a redemption period that you must give the owner before the property actually becomes yours. So you have to check with your state. :o
I have a question for you. Where did you get your hard money?
I’ve bought houses at Trustee auctions in the way you mention: bought with cash, refinanced right away.
The deed you get is the only one you get. However, you can get title insurance for the full assessed value.
giJ
I have a better question…How did you refi so quickly after the sale? I’m assuming it was a non-owner occupied property. If so, was it mandated that it had to be rented at the time of the refi?
Because I buy with cash (hard money would qualify), not a mortgage, I own it outright. I then refi it (it’s considered a refi if you already own it, even if there’s no financing involved). The mortgage broker/company I work with will use appraised value instead of purchase price right away to determine the amount you can mortgage for the best mortgage rates (70/30, 80/20, etc).
giJ,
My first property was purchased at auction with cash $49k(my own). I’m closing in 2 weeks on that property for a purchase price of $75k. My tenant decided to purchase it from me after putting about 2k in it for paint and appliances.That was a lot of dough to put up, especially it was my first time at an auction !! I realize now that I really got caught up in the mesmerizing effect at being at the auction and being a participant rather than an observer. My second time around I did my much diligent home work and researched the properties and dug in the courthouse records and came out with a pretty good deal. Two properties for $26k cash (my own). Now I have 2 properties, free and clear. So now you are saying that I can refi, put a first mortgage on the properties based upon their appraised values and pull out my equity ??
Now I have 2 properties, free and clear. So now you are saying that I can refi, put a first mortgage on the properties based upon their appraised values and pull out my equity ??
Different lenders have different rules about this, but my lender will do it. I’ve also found some others who will. The underwriter has to approve it, but it wasn’t a problem in my case.
Talk to different lenders until you find one who will do it.
Turns out my lender also gave me a great rate for non-owner occupied (2 points, 5.85%).
giJ,
Thanks alot for all the info, I definitely do not want to use any more of my money to do my investing. I need to be more educated concerning financing and have access to OPM when it comes to financing deals. After the sale of my 1st property, I have some small issues on my credit report to clean up. That should significantly increase my fico. I see that you’ve had success with HML’s, I’m not sure if I want to go that route yet.