Bank Foreclosures and Contract Transfers

[Joseph Sanchez]

Hello Everyone. I have been reading alot lately about this subject and I am abit confused maybe someone can give me some advice. If i am the successful high bidder on a bank foreclosure auction, and I provide the initial down payment required, will I also have to show proof of funds for the remaining balance in order to get a contract? The reason I ask that question is because many of the articles I have read state that the sale is not contingent upon the buyers ability to secure financing? Lastly, if I am required to show proof of funds can that proof come from another source other than myself? Thanks

Joe

[Bill Gulley]

Joe, a foreclosure auction is an auction, not a bank sale. The auction is under the supervision of the county, usually the sherriff or county clerk, if it is a jusdicial foreclosure it is under court order. The bank or lender requests that the Trutee under the loan security agreement sell the property so that they can get their money. At these auctions, there may be some qualification required by the office in charge, but many times not. If you bid, and you win you bought it! If you can't come up with funds in the required time frame, anywhere from within the hour or maybe three business days, you might be in front of a judge explaining what the heck you were doing! Don't bid unless you can belly up to the bar! Where you get your funds is irrelevant.

Proof of funds is usually the problem after the bank has the winning bid and they take the property to be sold. Good luck, Bill