Foreclosure Fianancing NIghtmare

[Eric Wyche]

Good Evening BP community,

I really need your help with this financing question?  OK here is the deal, my mother and I are trying to buy a foreclosed property here in S. Ga.  She has the credit, I have the cash (recent Lawsuit) to pursue this deal.  The property is under contract for 67,000, we are using Navy Federal for financing at a 5.375% 30 yr fixed with 5% down.  The house does needs repairs and we are willing to fix, our bank does not want to close unless repairs are made prior to closing, and of course the bank selling the foreclosure does not want us to fix before.  I know many of you have been in the same situation.  We have been looking at this other lender (local small bank) that will help us get into the house but i kind of feel uneasy until i get more info, we applied, but i wasn't real clear on the name or type of loan it was (construction  I think), however it would be for 5 years at 6% with 10% down with money in escrow to make repairs. We will know more about this service on Monday after credit reports come back. The agent stated its not a mortgage loan  but this will help us at least get into the house and get repairs done and then go back to Navy Federal to refinance into a 30 year fixed.

Here is the thing, 

1. We thought about paying cash for the home, but it will hurt my pockets on getting repairs done to get into position to refinance.  What are my options with that?

2. It seems to me that with the 5 year loan, we will paying about 10,000 out the door in closing and money down, then out more money for the refinance and second closing.  Is this a Good Idea to be able to get in the home on financing instead of paying cash upfront.

3. We got the contract Friday 3/8/19, Navy Federal wants us to send contract to get started on appraisal and inspections.  They already stated we needed the contract to move forward, but in previous conversations they also said all repairs will need to be made before closing.  How can this be possible if foreclose bank wont let u fix property?

Visual problems: due to recent tornadoes, the sun room roofing needs replaced due to leaking which in return has caused the tiles in the interior roof and insulation to become soaked and molded, which has fell on the floor and caused water to run on the flooring casing damage to the vinyl floor tiles.

termite damage on 2 floor joist beams, causing kitchen and dining room floor sag...(termite inspection) moisture reading of 20 %, they recommended a moisture barrier class 1 with a sante fe dehumidifier and liquid termite protection for $4200.

Not worried about those cause because I am going to live in this home and have the money for repairs, so i guess my main question is?  What is the best way to buy this house.....

1.cash-no money to do repairs and refinancing.......

2.5yr construction loan 10% down on $81000 (with estimated unofficial repairs included with price of house) and refinance to 30yr fix.

3.Do you all know of any lenders that can help us in this situation, or any private lenders that are willing to refinance.

The Home Ownership Ball is Rolling now.......Help Me BP