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Can you finance a home purchases at an auction or does it have to paid for immediately?

  • August 23 2013 - Brookline
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Answers (4)

Check the auctin site thouroughly. Most auction companies have buyer ppreimum fees at least 5% of purchase price.Most do not have loan ccontingency or inspection contingency, very different from traditional transaction. I advice you to read read their guidelines.
   
  • September 17 2013
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That depends on the auction company. Check the auction site and review their guidelines. If the guidelines do not show a clear outline about your inquiry, you can always contact their support hotline.
  • September 14 2013
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Ck the auction site and read over everything. Auction.com will tell you whether they will accept financing. Most of the time you need to be preapproved and if the home needs alot of work a normal mtg might not cut it. You might need a special loan like a 203K loan that wraps repairs but even those have limits of $35000. Ck with your local lender for options, read the fine print on the auction sites. Good luck and Happy House Hunting!
  • August 29 2013
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Of course it depends on the auction site and how the property is being sold.  Most trustee sales (sheriff sales) require you to close the sale within a period of time (24-48 hrs) of the auction which means traditional financing will not work. You will need cash or hard money.

With popular sites like auction.com or HUBZU.com you must read the contract very carefully before bidding.  Most of the time they allow for financing, but do not allow for a financing contingency (if you have a problem) which puts your earnest money at risk.  Also some auction sites do not allow for inspection contingency or add a Buyer's premium or other fees to your bid which can not be financed.

Auctions offer a chance to get a property at below market, but read the terms of the auction and contract carefully before you bid.
  • August 23 2013
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