Buying Foreclosure from Auction with Hard Money

[Dan Colantonio]

I was looking into hard money lenders for buying an auctioned house online. Can someone describe their process of buying an auctioned house with a hard money lender and other steps in buying an auctioned house? How long did the process take until the house was fully yours? If you buy the house with people inside, can you re-list it and sell it right after without removing them?

Any information on the auction process would be great.

[Lynnette E.]

I buy auction property through websites, not on the courthouse steps.  They close in 30 days by contract terms generally, but it can be 2 weeks to 60 days, depending on the bank and title issues.

I pay cash.  You could use hard money, but would need that set up before you bid, and all ready to go, likely with a lender that you work with often.  And they will need to give you a proof of funds letter.

You could  immediately resell the house, but it might be hard to get buyers.  These properties are often distressed, and do not qualify for many types of loans.  

You can try to sell it occupied, but will take a major loss of revenue for this.  You will make more if you deal with the occupant.  Personally I see how they are there--do they have a lease I need to honor, if so, I would honor that.  If not, I give 60 day notice of rent increase to above market level.  They generally leave on their own.  If not, then evict or cash for keys, but likely they have been offered that already by the bank and turned that down.