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Updated over 3 years ago,
Foreclosures | Conventional Financing not Allowed
I'm familiarizing myself with the foreclosure market in Northern Virginia, specifically Fairfax County and I have a question on obtaining the cash for purchasing a foreclosure at auction.
This may not be unique to only Fairfax County, but cash is required for the purchase and conventional financing is not allowed. In Fairfax County, a bidder's deposit of 10% of sale price or 10% of original principal balance of subject deed of trust, whichever is lower, is required day of auction in the form of cash or certified funds payable to the Substitute Trustee present at sale. The bidder then has up to 15 days to close on the remaining balance in the form of cash (i.e., cash, cashier check, money order).
I don't have hundreds of thousands of dollars in cash just sitting around that I can tap into for bidding on foreclosures. What are some means to obtaining cash when conventional financing can't be used?
Thanks in advance!