Sat, Jul 04, 2009
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Can I Get Loan/Funding For Sheriff Sale Balance After Bid |
rehabber_pa
28 Posts
Member Since: 10/22/2003
East Hampton, CT
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Posted: 23:17 on 04-19-2004
May be a dumb question...but here goes.......
I've bought 3 properties at Sheriff Sales so
far (townhouses). Per the rules, I paid the
10% after i won the bid, then came back to
the courthouse 10 days later and forked
over the other 90% (cashiers check). These
were townhouses...100k range- PA - I bought
the first via cash/cahier's check, once I got
the deed, got a loan against it to get my
cash out, then took this cash and used
it to buy the next, etc.
My question is, I 'only' have about 100k
liquid cash, but I'm interested in buying larger
properties at Sheriff Sales (200-400,000
range). I can come up with the 10% down
for these no problem, but don't have liquid
money to cover the full 200,000-400,000
bid price. Does any one know of a funder/
bank that will fund me for the amount due
(the 90% remaining balance due) from
a Sheriff Sale. In PA, no way it would happen
since you only have 10 days to come up with
the remaining 90%, but in some states, like
NJ and CT they give you 30 days to pay
the balance. Will any lender fund me
or do they all want a 'traditional closing'
with a title company/etc. and won't loan me
the money when it's not a 'real closing' - ie
I walk to the Sheriff's Office and give them my check . What about hard money Lenders?
Yes...I know that if I don't produce the 90%
balance due after I win the bid, then I lose
my 10% bid, so that's why I'm asking before
I bid on a more expensive property.
Thanks in advance for any insight into this.
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KyleGatton
936 Posts
Member Since: 10/07/2002
Kenneth City, FL
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Posted: 09:47 on 04-20-2004
There are private lenders that will either partner with you or give you 6 months to find a new loan. But the cost is high either way. If you partner its an obvious 50/50 split of the equity, and the interest rates for the latter would be 12-19% for the 6 month term. They are a little harder to find, but they are out there. If you have a decent mortgage broker they will have access to the larger private lenders. To sweeten the deal, you may want to group a couple of properties together so that the buy price would be just over a million, this way it will be worth there time. The lending arena between 300K and 999K is tough, even with private lenders.
Good Luck,
Kyle
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