Cash-out Refinance on a Sheriff Sale Mortgage Foreclosure?

[Ben Chung]

I'm not sure if this varies state to state, but I'm an investor that primarily works in the greater Philadelphia area. One of the avenues I use to buy properties is through sheriff sale mortgage foreclosure auctions, which require all cash to close. That's a substantial amount of money that you have to tie up into a property. Is it possible to cash-out refinance immediately after closing with the sheriff? I see that many HM lenders require a seasoning period, are there any that don't? Let me know your thoughts BP Community!

[Robin Simon]

Quote from @Ben Chung:

I'm not sure if this varies state to state, but I'm an investor that primarily works in the greater Philadelphia area. One of the avenues I use to buy properties is through sheriff sale mortgage foreclosure auctions, which require all cash to close. That's a substantial amount of money that you have to tie up into a property. Is it possible to cash-out refinance immediately after closing with the sheriff? I see that many HM lenders require a seasoning period, are there any that don't? Let me know your thoughts BP Community!

 Generally - yes this will be typically allowed, as long as the property is in good shape and doesn't need more than minimal renovations.  You will also likely face some leverage limits if you cash-out refi very quickly (within 6 months or so), but should definitely be doable!