Foreclosure financing?

[Miriam Peck]

Want to purchase a home with 4 acres that is goining to be auctioned at county courthouse in May. It needs a new air conditioner, fixtures but not much else.

The county wants $5,000 down and the rest by 2 p.m the same day at the auction. The house was last on the market for $200,000. I was told the bank did not accept an offer for $180,000 and took it to foreclosure.

My question is how do I get alternative financing? We had a house flood in 2010 and the insurance did not pay. We paid on the house for 4 months because we have never been late on a mortgage and we hoped the insurance company would change it's miind after we sued. They didn't our house went into foreclosure in the mediation settlement they are supposed to take the foreclosure off husband's credit and it has not happened it. We got almost nothing.

We own a rental house and just want to purchase this one to live and die in:) We have been renting since 2010 for $1,500.

Any assistance or direction would be appreciated.

Miriam

[Bill Gulley]

Welcome to BP!

I see no one jumped on this to answer.

Sounds like the reality is that unless you know someone willing to finance you you won't be in a position to look at foreclosure sales.

Any lender will want a chunk down and higher rates, probably short terms and that brings about other issues in meeting future obligations.

It will be a few years before you will qualify for RE conventionally. I suggest if you can swing a deal it will be a seller financed transaction or installment deal. You can search here for; contract for deed, lease purchase, lease option, seller financing.

The reality is, you will be making it harder on yourself by chasing properties you can't buy. There will be more homes in the future to live and die in, 3 or 4 years from now you may find a better home!

Good luck!