Finding Money for Personal Purchase at auction

[Chris Cooper]

Hi - new to the forums here.. 

Question came up for a home my wife and I want to purchase at auction. At our auctions, 10% of winning bid is required with balance within 48 hours. We have close to 60% of the final price, do you know of any place that can provide funding for the remaining balance on short term?

Ideally, we would get the loaned money after we win the auction. Then once we have the Deed we will refinance through a conventional lender and pay back the first note with interest, etc...

Wasn't sure what options for fast cash for someone buying to live in a foreclosed vs using it as a investment vehicle. 

Thank you for any suggestions. 

Chris

[Jon Holdman]

A loan on a house you're going to live is a much different beast than an investment loan. Much more heavily regulated and most hard money lenders won't do them. At one point one of the local HMLs would do auction loans. Here you have to produce the money on the spot. So, the HML would accompany you to the auction and, if you won, handed over the checks. Not sure if they still do.

Your best bet is probably to scrape up the money from other sources.  Either unsecured (credit card cash advances, personal loan) or secured by some other asset.  Then refinance to pay those off.

Don't, don't, don't even think about falling in love with a house in this sitaution. It may well never go to auction. Even if it does, the auctions I've watched usually start the bidding at what they're owed, which is often far above market value. No body bids and it eventually re-appears on the market as a REO. If they start the bidding low enough to be interesting, there will be other bidders. Don't mean to be discouraging, but your chances of buying a specific property in this way are slim. Keep looking for other prospects.