| We are going to focus on buying homes from Sheriff | | | | the home and the appraiser can not get into the home, |
| Auctions only for this article. Basically, the way a | | | | then a full appraisal can to be done and that will be |
| sheriff's sale works is that a home is foreclosed on by | | | | reason for immediate loan denial with most mortgage |
| a lender usually due to a lack of the homeowner being | | | | lenders. Many times foreclosed homes are run down |
| able to make the necessary mortgage payments. | | | | and in need of serious repairs. Depending on what is |
| Once the home is foreclosed upon, the home goes to | | | | wrong and how much the repair work is, this may be |
| Sheriff's Sale (this could happen quickly or it could take | | | | reason for immediate loan denial if the repair work can |
| awhile to get to this point). At Sheriff's Sale most | | | | not be done before closing. Which, it obviously can not |
| lenders have a representative go in and bid on the | | | | be done before closing since it is a bank owned home |
| homes to make sure that the homes do not sell for | | | | being sold at sheriffs sales and not through a traditional |
| too cheap. | | | | seller. Buying foreclosed homes through a sheriff sale |
| They have a figure in mind that they know they must | | | | is much easier and more recommended to do if you |
| sell the home for and the bank representative will bid | | | | have the cash to buy the home(s) outright and you do |
| on the home up to that amount if necessary. If the | | | | not require financing. |
| bank buys the home back, they will usually hire a realty | | | | While buying foreclosed homes can be a very |
| company to sell the home for them. If you are the | | | | lucrative business endeavor, it can also be a very risky |
| successful winning bidder, then you have to pay 10% | | | | one too. Buying homes from sheriff auction can help |
| down immediately via cash or certified funds. You then | | | | you to buy a home for under market value, but in most |
| have 7 days to pay the remaining balance off without | | | | areas the bidding on these properties begins at two |
| incurring any interest. If you can not pay it off in 7 days, | | | | thirds of their appraised value. Therefore, you are |
| you have 30 days to pay the remaining balance off, | | | | most likely not going to get any ridiculously good deals |
| with interest. If you are not able to pay the remaining | | | | at a sheriff's auction, but you can get some very good |
| balance off within 30 days, you can request an | | | | deals if you are patient enough and you do enough |
| extension which is not always granted or be held in | | | | research on the properties before the auction. |
| contempt of court, subject to fines and loss of your | | | | Remember you can not get into the home before you |
| 10% earnest money deposit. | | | | buy it, unless you stop by the house and the former |
| Obtaining financing on a home sold via sheriff's auction | | | | homeowners are still living there, in which case you |
| can often times be very difficult to do. Even if you are | | | | would need to ask them for their permission to walk |
| the winning bidder, you can not access the home until | | | | through the home that they just had foreclosed on. |
| you have paid the remaining winning bid off in full. Most | | | | This is usually not a recommended idea as some |
| lenders are going to want a full interior/exterior | | | | homeowners have very bitter feelings about losing |
| appraisal done on the home and if you can not get into | | | | their homes. |