Buying at the courthouse steps and financing later

[booter1]

With more and more of the high-end homes ultimately making their ways to the courthouse steps (after numerous delays/attempts at loan mods,etc)we have been considering purchasing a higher-end home when it hits the courthouse steps as a potential way to get a deal.

It seems like there is less interest from “flippers/renovators” at the high end for homes in good condition.

If one purchases a home in this way (all cash) and then seeks financing later on- what are the risks/implications? Is it a “recourse” loan becasue it is post-purchase? HLS?

Thanks!

[Effective Demand]

It is technically recourse but effectively almost any single loan in California isn’t recourse because of the “single action rule” (also called the one action rule). Lenders can take the house or go after your for the debt, but not both with that rule. They can go through a judicial foreclosure instead of a non-judicial foreclosure to get recourse but that is an extremely long and expensive process. To give you an idea of how rare it is the last person I can think of that almost got judicially foreclosed on was Michael Jackson.

As for the risks. The risk is that the property has some condition that makes it not lendable. Most issues are fixable, some aren’t (some title defects, land issues, or you sit on a nuclear waste dump). The other issue is that cash out refinances are much more conservative so you might only be able to get 60-75% of your money depending on the lender.

[Effective Demand]

It is technically recourse but effectively almost any single loan in California isn’t recourse because of the “single action rule” (also called the one action rule). Lenders can take the house or go after your for the debt, but not both with that rule. They can go through a judicial foreclosure instead of a non-judicial foreclosure to get recourse but that is an extremely long and expensive process. To give you an idea of how rare it is the last person I can think of that almost got judicially foreclosed on was Michael Jackson.

As for the risks. The risk is that the property has some condition that makes it not lendable. Most issues are fixable, some aren’t (some title defects, land issues, or you sit on a nuclear waste dump). The other issue is that cash out refinances are much more conservative so you might only be able to get 60-75% of your money depending on the lender.

[Effective Demand]

It is technically recourse but effectively almost any single loan in California isn’t recourse because of the “single action rule” (also called the one action rule). Lenders can take the house or go after your for the debt, but not both with that rule. They can go through a judicial foreclosure instead of a non-judicial foreclosure to get recourse but that is an extremely long and expensive process. To give you an idea of how rare it is the last person I can think of that almost got judicially foreclosed on was Michael Jackson.

As for the risks. The risk is that the property has some condition that makes it not lendable. Most issues are fixable, some aren’t (some title defects, land issues, or you sit on a nuclear waste dump). The other issue is that cash out refinances are much more conservative so you might only be able to get 60-75% of your money depending on the lender.

[Effective Demand]

It is technically recourse but effectively almost any single loan in California isn’t recourse because of the “single action rule” (also called the one action rule). Lenders can take the house or go after your for the debt, but not both with that rule. They can go through a judicial foreclosure instead of a non-judicial foreclosure to get recourse but that is an extremely long and expensive process. To give you an idea of how rare it is the last person I can think of that almost got judicially foreclosed on was Michael Jackson.

As for the risks. The risk is that the property has some condition that makes it not lendable. Most issues are fixable, some aren’t (some title defects, land issues, or you sit on a nuclear waste dump). The other issue is that cash out refinances are much more conservative so you might only be able to get 60-75% of your money depending on the lender.

[Effective Demand]

It is technically recourse but effectively almost any single loan in California isn’t recourse because of the “single action rule” (also called the one action rule). Lenders can take the house or go after your for the debt, but not both with that rule. They can go through a judicial foreclosure instead of a non-judicial foreclosure to get recourse but that is an extremely long and expensive process. To give you an idea of how rare it is the last person I can think of that almost got judicially foreclosed on was Michael Jackson.

As for the risks. The risk is that the property has some condition that makes it not lendable. Most issues are fixable, some aren’t (some title defects, land issues, or you sit on a nuclear waste dump). The other issue is that cash out refinances are much more conservative so you might only be able to get 60-75% of your money depending on the lender.

[george]

I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?

[george]

I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?

[george]

I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?

[george]

I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?

[george]

I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?

[UCGal]

[quote=george]I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?[/quote]

Don’t know about auction houses – but court house steps is all cash on the spot.

[UCGal]

[quote=george]I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?[/quote]

Don’t know about auction houses – but court house steps is all cash on the spot.

[UCGal]

[quote=george]I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?[/quote]

Don’t know about auction houses – but court house steps is all cash on the spot.

[UCGal]

[quote=george]I’ve come across real estate auctions on the internet where after winning (and paying a large non-refundable deposit)you have 30-45 days to pay the balance owing. Does this ever happen at auction houses or on the court house steps in San Diego?[/quote]

Don’t know about auction houses – but court house steps is all cash on the spot.

[Author]

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