Posted by Dan Stra on November 28, 2000 at 13:53:10:
Becky,
If it makes you feel nervous I suggest that you go to the auction to learn but not to bid.
You should check with the USRDA and ask your question of them. My experience with gov’t auctions is that if you have a reasonable reason for not getting the financing they will refund the deposit.
One final piece of advice, one reason your asking the question is that your not preapproved or prequalified for a morgage. This is something that you should do so that you can go to these auctions feeling much more comfortable.
I could really use some advise. My husband and I are studying a creative financing course and we
are anxious to get started, beginning with purchase of our own house. Looking through the newspaper this
weekend we came across a 3 bedroom home in our town that is going up for auction in a week. I have no
experience in how an auction works and we are not able to inspect the interior before the purchase. These things
are making us nervous. The terms of the auction are : minimum bid of $12,600 ( the tax value of the property is
$46,000), 10% down at time of sale, in the form of a cashiers check, and 30 days for the balance. It is an open
auction and I don?t know if it is important but it is a USDA Rural Development Foreclosure. We were also
wondering, if we win the bid and can?t find financing will we loose our 10%? There is also year 2000 taxes ($731)
that are past due on the property.
Can anyone help us with more info an the auction experience and also creative financing (no money down,
questionable credit) techniques on a deal like this?