Buying at the courthouse steps and financing later

[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”?

[SD Realtor]

George –

Say you plunk down 600k at the auction in cash to buy the home. Your plan is to then refinance the home as soon as possible. Maybe pull out 500k in cash and have a regular mtg. Well you cannot do that immediately. You need to own the home awhile. For a cash out refi the standard is 6 months but that will vary with lenders. Also the value of your home when you do the refi will determine the limits of how much you pull out. The rate of the mtg will be whatever prevailing rates are 6 months down the line when you do the refi. Bond market dictates where mtg rates are.

Hope I explained it okay.

[SD Realtor]

George –

Say you plunk down 600k at the auction in cash to buy the home. Your plan is to then refinance the home as soon as possible. Maybe pull out 500k in cash and have a regular mtg. Well you cannot do that immediately. You need to own the home awhile. For a cash out refi the standard is 6 months but that will vary with lenders. Also the value of your home when you do the refi will determine the limits of how much you pull out. The rate of the mtg will be whatever prevailing rates are 6 months down the line when you do the refi. Bond market dictates where mtg rates are.

Hope I explained it okay.

[SD Realtor]

George –

Say you plunk down 600k at the auction in cash to buy the home. Your plan is to then refinance the home as soon as possible. Maybe pull out 500k in cash and have a regular mtg. Well you cannot do that immediately. You need to own the home awhile. For a cash out refi the standard is 6 months but that will vary with lenders. Also the value of your home when you do the refi will determine the limits of how much you pull out. The rate of the mtg will be whatever prevailing rates are 6 months down the line when you do the refi. Bond market dictates where mtg rates are.

Hope I explained it okay.

[SD Realtor]

George –

Say you plunk down 600k at the auction in cash to buy the home. Your plan is to then refinance the home as soon as possible. Maybe pull out 500k in cash and have a regular mtg. Well you cannot do that immediately. You need to own the home awhile. For a cash out refi the standard is 6 months but that will vary with lenders. Also the value of your home when you do the refi will determine the limits of how much you pull out. The rate of the mtg will be whatever prevailing rates are 6 months down the line when you do the refi. Bond market dictates where mtg rates are.

Hope I explained it okay.

[SD Realtor]

George –

Say you plunk down 600k at the auction in cash to buy the home. Your plan is to then refinance the home as soon as possible. Maybe pull out 500k in cash and have a regular mtg. Well you cannot do that immediately. You need to own the home awhile. For a cash out refi the standard is 6 months but that will vary with lenders. Also the value of your home when you do the refi will determine the limits of how much you pull out. The rate of the mtg will be whatever prevailing rates are 6 months down the line when you do the refi. Bond market dictates where mtg rates are.

Hope I explained it okay.

[SD Realtor]

Yep we did jp. We closed yesterday and recorded today.

sdr – Saying it is highly unlikely to work and it cannot work are two different animals. What I find is that with most things in life people simply do not have the time or energy to accomplish getting a property at trustee sale. So it is unlikely to work because of the effort needed by the buyer not because of other factors.

I believe that yes it absolutely can be done. However the amount of time and work is not understood by those who have not actually done it.

[SD Realtor]

Yep we did jp. We closed yesterday and recorded today.

sdr – Saying it is highly unlikely to work and it cannot work are two different animals. What I find is that with most things in life people simply do not have the time or energy to accomplish getting a property at trustee sale. So it is unlikely to work because of the effort needed by the buyer not because of other factors.

I believe that yes it absolutely can be done. However the amount of time and work is not understood by those who have not actually done it.

[SD Realtor]

Yep we did jp. We closed yesterday and recorded today.

sdr – Saying it is highly unlikely to work and it cannot work are two different animals. What I find is that with most things in life people simply do not have the time or energy to accomplish getting a property at trustee sale. So it is unlikely to work because of the effort needed by the buyer not because of other factors.

I believe that yes it absolutely can be done. However the amount of time and work is not understood by those who have not actually done it.

[SD Realtor]

Yep we did jp. We closed yesterday and recorded today.

sdr – Saying it is highly unlikely to work and it cannot work are two different animals. What I find is that with most things in life people simply do not have the time or energy to accomplish getting a property at trustee sale. So it is unlikely to work because of the effort needed by the buyer not because of other factors.

I believe that yes it absolutely can be done. However the amount of time and work is not understood by those who have not actually done it.

[SD Realtor]

Yep we did jp. We closed yesterday and recorded today.

sdr – Saying it is highly unlikely to work and it cannot work are two different animals. What I find is that with most things in life people simply do not have the time or energy to accomplish getting a property at trustee sale. So it is unlikely to work because of the effort needed by the buyer not because of other factors.

I believe that yes it absolutely can be done. However the amount of time and work is not understood by those who have not actually done it.

[sdrealtor]

I agree and that is why I said highly unlikely and not impossible. Time and energy are one obstacle but there are many others notably capital, willing to take a risk and finding one you like enough to buy that you actually can beat the competition on. As big an obstacle as the work load is, I beleive finding a property you actually want to live in is as big if not bigger.

The one you just closed is not a house most people looking in this area would consider not matter what the price is. Of course if you lower the price enough you attract another level of buyer but I dont think the price could get low enough to do that. It just took a little waiting on your part to find the buyer who would accept that location at a market level price. Congrats on getting it done!

[sdrealtor]

I agree and that is why I said highly unlikely and not impossible. Time and energy are one obstacle but there are many others notably capital, willing to take a risk and finding one you like enough to buy that you actually can beat the competition on. As big an obstacle as the work load is, I beleive finding a property you actually want to live in is as big if not bigger.

The one you just closed is not a house most people looking in this area would consider not matter what the price is. Of course if you lower the price enough you attract another level of buyer but I dont think the price could get low enough to do that. It just took a little waiting on your part to find the buyer who would accept that location at a market level price. Congrats on getting it done!

[sdrealtor]

I agree and that is why I said highly unlikely and not impossible. Time and energy are one obstacle but there are many others notably capital, willing to take a risk and finding one you like enough to buy that you actually can beat the competition on. As big an obstacle as the work load is, I beleive finding a property you actually want to live in is as big if not bigger.

The one you just closed is not a house most people looking in this area would consider not matter what the price is. Of course if you lower the price enough you attract another level of buyer but I dont think the price could get low enough to do that. It just took a little waiting on your part to find the buyer who would accept that location at a market level price. Congrats on getting it done!

[sdrealtor]

I agree and that is why I said highly unlikely and not impossible. Time and energy are one obstacle but there are many others notably capital, willing to take a risk and finding one you like enough to buy that you actually can beat the competition on. As big an obstacle as the work load is, I beleive finding a property you actually want to live in is as big if not bigger.

The one you just closed is not a house most people looking in this area would consider not matter what the price is. Of course if you lower the price enough you attract another level of buyer but I dont think the price could get low enough to do that. It just took a little waiting on your part to find the buyer who would accept that location at a market level price. Congrats on getting it done!

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