Went to the courthouse steps

[Effective Demand]

[quote=patientrenter]”How can you get a loan to purchase a property if you don’t have the cash to buy it at the auction?”

How do I buy something for more than I can afford? In the right economic system, the answer is you can’t. But the fact that there are other valid answers in our current economic system tells me we’re a very long way from recognizing our problems, let alone fixing them.

Clearly, if not having the purchase price for a home doesn’t tell you ANYTHING about whether you can afford it, then we still live in a world that’s way too leveraged.[/quote]

You definitely will have to be patient, patientrenter, if you expect people to have the cash sitting in the bank in order to buy a house before you buy.

That said for the OP, since they don’t have the cash they would have to get a pretty darn good deal and the trustee sale because hard money will definitely cut into that deal. And you will be competing with the sharks at that point for the “good” deals.

I was at the trustee sales here in Ventura today, 5 of 9 sales went to 3rd parties. The competition is very active (though today was an anomaly).

For San Diego, I have the trustee sales broken out between revert to the bene and 3rd party sales. It gives you an idea of whats going on right now:
http://effectivedemand.blogspot.com/2009/06/update-san-diego-trustee-sales-for-june.html

[jeeman]

Ok, the point is that most of us have to get a mortgage to afford the house we want. In order to buy a house at the auction, you need the cash upfront. patientrenter, this isn’t a “mindset” problem…I don’t have ALL the cash, even though the bank has pre-approved me for a mortgage. Do YOU have all cash for the house you want to buy? Or are you, too, going to get a mortgage?

I would need to bridge the gap for however long (hopefully a couple days) between the auction and funding of the mortgage.

That was my real question.

[jeeman]

Ok, the point is that most of us have to get a mortgage to afford the house we want. In order to buy a house at the auction, you need the cash upfront. patientrenter, this isn’t a “mindset” problem…I don’t have ALL the cash, even though the bank has pre-approved me for a mortgage. Do YOU have all cash for the house you want to buy? Or are you, too, going to get a mortgage?

I would need to bridge the gap for however long (hopefully a couple days) between the auction and funding of the mortgage.

That was my real question.

[jeeman]

Ok, the point is that most of us have to get a mortgage to afford the house we want. In order to buy a house at the auction, you need the cash upfront. patientrenter, this isn’t a “mindset” problem…I don’t have ALL the cash, even though the bank has pre-approved me for a mortgage. Do YOU have all cash for the house you want to buy? Or are you, too, going to get a mortgage?

I would need to bridge the gap for however long (hopefully a couple days) between the auction and funding of the mortgage.

That was my real question.

[jeeman]

Ok, the point is that most of us have to get a mortgage to afford the house we want. In order to buy a house at the auction, you need the cash upfront. patientrenter, this isn’t a “mindset” problem…I don’t have ALL the cash, even though the bank has pre-approved me for a mortgage. Do YOU have all cash for the house you want to buy? Or are you, too, going to get a mortgage?

I would need to bridge the gap for however long (hopefully a couple days) between the auction and funding of the mortgage.

That was my real question.

[jeeman]

Ok, the point is that most of us have to get a mortgage to afford the house we want. In order to buy a house at the auction, you need the cash upfront. patientrenter, this isn’t a “mindset” problem…I don’t have ALL the cash, even though the bank has pre-approved me for a mortgage. Do YOU have all cash for the house you want to buy? Or are you, too, going to get a mortgage?

I would need to bridge the gap for however long (hopefully a couple days) between the auction and funding of the mortgage.

That was my real question.

[SD Realtor]

jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.

[SD Realtor]

jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.

[SD Realtor]

jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.

[SD Realtor]

jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.

[SD Realtor]

jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.

[Anonymous]

Try some hard money lender.

[Anonymous]

Try some hard money lender.

[Anonymous]

Try some hard money lender.

[Anonymous]

Try some hard money lender.

[Author]

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