Is it possible to refinance an auction buy
I had my eye on some Sheriff auction properties in Allegheny County, PA. I'm new to this type of property and have been reading a lot on this forum and the other sites and it's overwhelming.
Here we have to make an all cash payment in 5 days. I can arrange that by family loans. My question is, how difficult is it to get a refinance mortgage for an auction buy? The properties I have narrowed all seem to be foreclosure of the first lien (main mortgage). I'll probably get a formal thorough title search done once I'm sure of a few as well.
My understanding is that titles offered by the bank would be clean after the auction. So what all problems can prevent me from getting a mortgage on it?
Also, if I can get a mortgage, will it be based on the auction price or the price determined by an appraiser. I guess the idea is to see whether my repairs would help I'm refinancing.
Thanks for your help
Most Popular Reply
Sheriff sales are sold as is with all defects and liens attached - they are the worst case scenarios.
OP seems to be basing it on the opposite - which may hurt badly.
Its possible that the first lien is foreclosing and it will wipe out the secondaries - but you will see in reality - the purchaser has to pay months of hoa and outstanding bills.
Reason is that those have not turned into liens and public records yet - and so cannot be wiped off "automatically".
My two cents.