Posted by Jasmine on August 16, 2003 at 08:00:16:
Thanks for your response. I did a search on Georgia foreclosure laws and on the attorney that is handling the property I am interested in. It is required that you have 100% certified funds available at the auction. I have contacted the owner and may purchase pre-foreclosure if there are no other liens on the property.
Can you finance a foreclosure purchase? - Posted by Jasmine
Posted by Jasmine on August 13, 2003 at 20:46:02:
My hubby and I looked at a house FSBO recently that we really loved, but the owner quit returning our calls and the signs were removed from the property. No one has moved in; however. I noticed a foreclosure notice in the newspaper last weekend and did a bit of searching. The original loan amount is much less than the actual value (about 50k less), but still considerably more than I have available on hand. The notice states that it will be auctioned at the courthouse steps in about 2 weeks. It is being handled by an attorney now- are the mortgage companies/attorneys generally against arranging a sale instead of selling via auction? Would I be required to have funds on hand at the close of the auction? or is there usually a specified amount of time allowed to obtain financing? If I am required to have funds on hand, is there any way to obtain financing for such a situation? I’d appreciate information anyone could post. Sorry for all the questions, but I’m very new to all of this. I’d really appreciate any help. TIA! (This is in GA btw)
Re: Can you finance a foreclosure purchase? - Posted by sonny
Posted by sonny on August 27, 2003 at 13:53:47:
Hi jasmine,
I am just checking to see how your deal is going. I have a similiar deal that I am trying to get going but I may need a few more information before I shoot the gun. If you have more heplful info, please shoot it my way. I’ll do the same for you.
Sonny
Re: Can you finance a foreclosure purchase? - Posted by Elizabeth (NJ)
Posted by Elizabeth (NJ) on August 15, 2003 at 16:52:46:
I specialize in bankruptcy law, am an paralegal (not an attorney) and operate my business pursuant to 11 U.S.C. Sec. 110. Nothing I say here may be construed as legal advice which I am not authorized or licensed to give.
Yes, you must have a cashier’s check for at least 20% of the purchase price at the auction, then the balance will be due in 30 days. However, keep in mind that the price you pay at the sheriff’s sale will be higher than you would pay pre-foreclosure.
Why not get in touch with the homeowner. Talk to her about putting her property into a Chapter 13 bankruptcy which will immediately stop the sale. This will give her time to reorganize under a Chapter 13 Plan, to determine the amount of her arrears, and it will also give you time to negotiate with the mortgage company to buy the property from her and allow her to emerge from the bankruptcy debt-free (as far as the home goes anyway).
If she successfuly sells the property, thus remedying the arrears problem, she is free to move forward with her life, you have a new property, and the bank got paid. Everybody’s happy.
Just another word: My experience (20 years worth) has been that mortgage companies foreclosing on a property are usually not amenable to short sales. That’s because they can wait until the sheriff’s sale and get what they need or more.
I can also tell you from experience that most banks and/or investors run from foreclosures because they are a big headache.
Good luck.