| Investors are finding a large number of discounted | | | | bank and still rehab and flip them. If you are going to flip |
| properties at foreclosure auction sales. The main | | | | them, then you should consider getting a private |
| problem with foreclosure auction sales is you need all | | | | money loan. |
| cash most of the time to purchase the property. | | | | Certain states allow the borrower to redeem the |
| How to Find Foreclosure Auctions | | | | property after the sale. This could mean that you have |
| Most properties that are being auctioned are | | | | no legal interest or ownership in the property, and you |
| advertised in the newspaper in the county where the | | | | are out of pocket all the costs so investigate your |
| property is being sold and at the courthouse steps you | | | | state rules first. Any doubts, check with an attorney. |
| can find a notice which gives you the date, time and | | | | Finance Your Foreclosure Property with Hard Money |
| property information. You can also check at the local | | | | Lenders |
| county recorder's office for notice of sales or notices | | | | This is where your source of private money lenders |
| of defaults depending on which state you live in. Some | | | | comes in handy. Having cash ready fast is crucial to |
| foreclosure actions are judicial, which need court | | | | being able to purchase a foreclosure auction property. |
| approval, and others are non-judicial conducted by a | | | | Private money lenders can close transactions quickly. |
| trustee and do not need court approval. | | | | Especially if you are planning on flipping the property, it |
| What to Know About Foreclosure Auctions | | | | makes sense to get a short term loan from a private |
| The highest bidder normally gets the property. | | | | money lender as opposed to going to the bank or |
| However, sometimes the properties do not sell | | | | other traditional financial institution. |
| because the lender is sets a high minimum bid because | | | | The private money lender is looking at the property as |
| they want to recover a good portion of the mortgage | | | | the collateral and not your credit so it's easier to get |
| balance that is owed by the borrower. | | | | financing quicker from a hard money lender. If you are |
| If the properties do not sell, the bank buys them back | | | | planning on keeping your foreclosure auction property |
| and they become REO (bank owned properties). You | | | | for awhile, then I suggest you go with a traditional |
| can then buy REO properties at a discount from the | | | | lending institution. |