Buying at the courthouse steps and financing later

[sdrealtor]

Your stats pretty much say it all. Went to 40 auctions looking to buy anything that made sense and bought a total of 8 properties. I’m guessing most of those were low end condos. So all told you ended up getting a couple decent/nice SFR after going to 40 auctions and you werent looking to buy specific properties. That exactly is my point.

Can it be done? Absolutely it can. Is it likely to work? Highly unlikely.

[TexasLine]

[quote=sdrealtor]Unless you plan on buying a high-end home (think auction price above 750K minimum) I personally dont beleive this is a viable strategy for 99% of the people. Even above that I dont think its viable for 90% percent. Auctions get cancelled over and over again. The waters are full of sharks with more cash, experience and information than the layperson. The pitfalls are potentially huge.

The professional investors go everyday and buy the best deals. They dont go to buy a specific home. The average joe looking to buy a specific home faces enormous obstacles to success. The only buyer I see this as a viable strategy for is someone willing to spend about $1M or more for a house that used to be $2M+. A $2M peak priced house is going to be a great house anyway you cut it and if you can get one for 50% off you may not be so particular regarding you own preferences.

I’m not saying its impossible but rather extraordinarily unlikely to be truly successful for the average homebuyer.[/quote]

Got it. Understood. Good, good info. Makes sense. Sorry to booter1 for the highjack. I think the original question was :

Submitted by booter1 on January 13, 2010 – 6:08am

“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 because it is post-purchase? HLS?-”

[TexasLine]

[quote=sdrealtor]Unless you plan on buying a high-end home (think auction price above 750K minimum) I personally dont beleive this is a viable strategy for 99% of the people. Even above that I dont think its viable for 90% percent. Auctions get cancelled over and over again. The waters are full of sharks with more cash, experience and information than the layperson. The pitfalls are potentially huge.

The professional investors go everyday and buy the best deals. They dont go to buy a specific home. The average joe looking to buy a specific home faces enormous obstacles to success. The only buyer I see this as a viable strategy for is someone willing to spend about $1M or more for a house that used to be $2M+. A $2M peak priced house is going to be a great house anyway you cut it and if you can get one for 50% off you may not be so particular regarding you own preferences.

I’m not saying its impossible but rather extraordinarily unlikely to be truly successful for the average homebuyer.[/quote]

Got it. Understood. Good, good info. Makes sense. Sorry to booter1 for the highjack. I think the original question was :

Submitted by booter1 on January 13, 2010 – 6:08am

“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 because it is post-purchase? HLS?-”

[TexasLine]

[quote=sdrealtor]Unless you plan on buying a high-end home (think auction price above 750K minimum) I personally dont beleive this is a viable strategy for 99% of the people. Even above that I dont think its viable for 90% percent. Auctions get cancelled over and over again. The waters are full of sharks with more cash, experience and information than the layperson. The pitfalls are potentially huge.

The professional investors go everyday and buy the best deals. They dont go to buy a specific home. The average joe looking to buy a specific home faces enormous obstacles to success. The only buyer I see this as a viable strategy for is someone willing to spend about $1M or more for a house that used to be $2M+. A $2M peak priced house is going to be a great house anyway you cut it and if you can get one for 50% off you may not be so particular regarding you own preferences.

I’m not saying its impossible but rather extraordinarily unlikely to be truly successful for the average homebuyer.[/quote]

Got it. Understood. Good, good info. Makes sense. Sorry to booter1 for the highjack. I think the original question was :

Submitted by booter1 on January 13, 2010 – 6:08am

“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 because it is post-purchase? HLS?-”

[TexasLine]

[quote=sdrealtor]Unless you plan on buying a high-end home (think auction price above 750K minimum) I personally dont beleive this is a viable strategy for 99% of the people. Even above that I dont think its viable for 90% percent. Auctions get cancelled over and over again. The waters are full of sharks with more cash, experience and information than the layperson. The pitfalls are potentially huge.

The professional investors go everyday and buy the best deals. They dont go to buy a specific home. The average joe looking to buy a specific home faces enormous obstacles to success. The only buyer I see this as a viable strategy for is someone willing to spend about $1M or more for a house that used to be $2M+. A $2M peak priced house is going to be a great house anyway you cut it and if you can get one for 50% off you may not be so particular regarding you own preferences.

I’m not saying its impossible but rather extraordinarily unlikely to be truly successful for the average homebuyer.[/quote]

Got it. Understood. Good, good info. Makes sense. Sorry to booter1 for the highjack. I think the original question was :

Submitted by booter1 on January 13, 2010 – 6:08am

“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 because it is post-purchase? HLS?-”

[TexasLine]

[quote=sdrealtor]Unless you plan on buying a high-end home (think auction price above 750K minimum) I personally dont beleive this is a viable strategy for 99% of the people. Even above that I dont think its viable for 90% percent. Auctions get cancelled over and over again. The waters are full of sharks with more cash, experience and information than the layperson. The pitfalls are potentially huge.

The professional investors go everyday and buy the best deals. They dont go to buy a specific home. The average joe looking to buy a specific home faces enormous obstacles to success. The only buyer I see this as a viable strategy for is someone willing to spend about $1M or more for a house that used to be $2M+. A $2M peak priced house is going to be a great house anyway you cut it and if you can get one for 50% off you may not be so particular regarding you own preferences.

I’m not saying its impossible but rather extraordinarily unlikely to be truly successful for the average homebuyer.[/quote]

Got it. Understood. Good, good info. Makes sense. Sorry to booter1 for the highjack. I think the original question was :

Submitted by booter1 on January 13, 2010 – 6:08am

“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 because it is post-purchase? HLS?-”

[jpinpb]

SDR, didn’t you get a SFR foreclosure up in North County. I vaguely remember JTR had a video on it.

[jpinpb]

SDR, didn’t you get a SFR foreclosure up in North County. I vaguely remember JTR had a video on it.

[jpinpb]

SDR, didn’t you get a SFR foreclosure up in North County. I vaguely remember JTR had a video on it.

[jpinpb]

SDR, didn’t you get a SFR foreclosure up in North County. I vaguely remember JTR had a video on it.

[jpinpb]

SDR, didn’t you get a SFR foreclosure up in North County. I vaguely remember JTR had a video on it.

[george]

[quote=SD Realtor]
Finally you cant buy and then refinance. You will need to season the home for 6 months. In that time you are at the mercy of the bond market. How much cash you can pull out will depend on what your home appraises at.
[/quote]

Can you explain what you mean by “You will need to season the home for 6 months. In that time you are at the mercy of the bond market”?

[george]

[quote=SD Realtor]
Finally you cant buy and then refinance. You will need to season the home for 6 months. In that time you are at the mercy of the bond market. How much cash you can pull out will depend on what your home appraises at.
[/quote]

Can you explain what you mean by “You will need to season the home for 6 months. In that time you are at the mercy of the bond market”?

[george]

[quote=SD Realtor]
Finally you cant buy and then refinance. You will need to season the home for 6 months. In that time you are at the mercy of the bond market. How much cash you can pull out will depend on what your home appraises at.
[/quote]

Can you explain what you mean by “You will need to season the home for 6 months. In that time you are at the mercy of the bond market”?

[george]

[quote=SD Realtor]
Finally you cant buy and then refinance. You will need to season the home for 6 months. In that time you are at the mercy of the bond market. How much cash you can pull out will depend on what your home appraises at.
[/quote]

Can you explain what you mean by “You will need to season the home for 6 months. In that time you are at the mercy of the bond market”?

[Author]

Posts