Re: CA tax sale/no doc loans - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on February 08, 2002 at 10:08:40:
You mention 10% down and then . . .? The tax collector has the right to do an installment sale with the buyer putting up $5K or 10% down,whichever is greater, and then paying the remainder within whatever time period the tax collector sets, up to 90 days. HOWEVER, very few tax collectors do the installment sale. Have you verified that the tax collector will do this in the county you are planning buy? Call and ask.
Most tax collectors in CA want 100% cash at the sale.
Forget institutional lenders. Try to find a hardmoney lender or a person you know who will trust you to loan you the money that you need. Or, in my opinion, do not bid. You lose your deposit if you can not close the deal. If you don’t have the money lined up early, you will be out of luck.
I once found a lender in the LA area that said he would loan on tax sales properties. I tried calling a few years after that and the company was not in business then. But, this gives me hope that some lender will do it. You might want to call EVERY body that advertises that they do loans in the local and LA phone books yellow pages, plus the newspaper advertisements. Yes, a lot of work to find the potential lenders. But, the potential profit is great.
Good Investing**Ron Starr