Tax Foreclosure Financing - Arkansas

[Chris Garrett]

I'm looking to buy a house from an upcoming tax foreclosure auction in my county (in Arkansas). The property is in a great neighborhood, but it will definitely need some repairs. I have access to a little cash, but I doubt it will be enough to win the bid on this property. What is the best form of financing that I could arrange in order to get this property at the auction? Would it be possible to find a bank that would give an open line of credit up to a certain point?

[Dustin Davis]

Anything is possible... financing in its traditional form wouldn't work here but if you can get a personal line of credit or hard money loan or home equity line of credit those would all work and banks/people do it every day. I would say in my opinion if you're having issues pulling money together for the tax sale buying a tax property might not be a good idea...where will the money come from to rehab it? There are a lot of possible hidden costs and no guarantees on those types of properties and it could take months or even years to gain possession of the property. I'd recommend talking to an expert or a real estate/ tax attorney to get educated on the process and risks involved before putting up money.