Can you buy a foreclosure at auction with transactional funding?

[Account Closed]

If have a buyer in place, can this work?  Will there be any seasoning issues?

SF Bay Area, CA 

[Jay Hinrichs]

the issue with funds for trustee sales and why its dominated by a relative handful of investors ... is you need cash to bid.. transactional lender will not do these as they are not going to let you walk out of their office with a check for 500k.. transactional lenders only put money into Escrow accounts.

you need a true money partner if you want to partake in the court house steps game.

There are few HML in the PDX and Seattle market that will provide checks to bid they actually bid for you.. but you have to make a 20% deposit in cash before they will bid for you... they then take a security interest in the Trustee receipt and when the deed comes they roll you into a HML... And since you already put your 20% down that is your skin. and then you pay rehab out of pocket.. so it allows in our market someone is 100 to 150k liquid to buy a foreclosure.. now when you add on all their points 14% interest rate their buying fee etc etc.. the deals become PRETTY SKINNY.. and most that do it are newbie types.. They market hard for their borrower investors. as they burn through them .. because many frankly just don't do that well and take a huge risk buying a home that has not had an inspection. And I the Bay AREA were you have VERY cashed up folks you can expect keen competition.