How quickly can I refinance after a tax deed auction?

Question

I am considering purchasing a property at a tax auction in the next couple of weeks and I am wondering if anyone has any idea when I would be able to finance the property.  In the State of Michigan, I am required to pay cash at the auction and am issuesd a Quit Claim Deed within 30 days.  My thought is it would be nice to take some cash out for any repairs as soon as I could perform a Quiet Title.  Does anyone know if this is feasible?

George P. · Answer

Sorry I am investing in Tax Liens, and not familiar with Michigan. You might want to contact an attorney

Paul OConnell · Answer

Thanks George.

Any idea the cost/timing of Quieting the title?

Also, Michigan does not have a Redemption period, so I've got that going for me.

George P. · Answer

wait for the redemption period to end, quite the title, and only then you're going to be able to refi.
as of today, you are not yet the owner of the property.

Jon Fadil · Answer

You're going to have a hard time finding anyone (including hard money lenders) to finance your deal since you acquired a tax deed and by quitclaim.  There is still a chance that the title is not clear and the lender would not be able to get a lender's title policy until you file for quiet title.

Ali Shah · Answer

check redemption periods as well as hard money/private lenders for financing..but first things first, what is the redemption period in your state?

Steve Babiak · Answer

You should contact hard money lenders working in that area to see what they can do, and what they would require of you.  That would be your most likely source of funding for a fixer.

Also, be very aware of any redemption periods that might apply (varies by state laws); if there is some redemption period, you might end up having to hold through the entire redemption period before you can get anybody to be willing to lend.