Financing sheriff sale

[Noah Wood]

Anybody know of any lenders that will loan to someone for sheriff sales? The homes in my area are being sold as-is sight unseen and I can’t get an appraisal inside until after I own it. That is where most lenders back out.

I know some lenders will lend to investors in this setup. I am a first time flipper so I need a lender that is okay with that I can put 20% down and have a good credit score.

Any help would be appreciated!

[Will Fraser]

This is exceedingly difficult because the asset is often not owned EVEN AFTER THE SALE!  Weirdest thing!  Depending on your state's definition of the "Right of Redemption", the foreclosed-upon person has the right to redeem the property after the sale (in Oklahoma that is up to 30 days after the sale, and in other states it is up to a year!!).  

There are a number of lenders in my market that will loan on this -- all of them are commercial lenders and the loan products usually have a higher origination fee (surely to compensate for all of the chaos they go through on these loans).

If you are certain that this is a good strategy for you (I'd encourage you to read the chapter on Sheriff's Sales in Zillow Talk) then a hard-money lender, a commercial lender, or a private money partner would be the best contact to have.

Good luck in the life!