Profile picture for user795379

buying a foreclosure? Help me understand this please

I found a home I want its a foreclosure and still listed for sale on homepath but looks like the house is up for auction too on the website starting next week. The auction website says non financible, and I don't have that much cash I would be using government issued loan. What should be my next step? The ideal situation is get my offer accepted then use FHA 203k Loan to fix up the house. Another question it last sold for 91k in 2010 its on the website for $32 would I likely be able to borrow 50k to fix the house up to current standards. Its in a desireable neighborhood, city, unknown why no ones bought it yet. Any advice would be appriciated..
  • November 29 2012 - US
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Answers (2)

Profile picture for Ofe Polack
First and foremost, try to find yourself a buyer agent, to assist you in the process.  Many properties are sold cash only due to issues that lenders will not accept, for instance, systems that do not work, structual problems, etc..
I would also discuss the possibilities of an FHA 203K loan with the lender,but  I do not think you are allowed to borrow more than the purchase price of the property.  I think you have to pass on this one and try to find another one that is more doable.  Good luck!
  • November 30 2012
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Unfortunately, if the auction terms for the property are cash only, they most likely would not allow you to switch to a financed offer if you were the winning bidder.  You should contact an agent in your area and look for a property you can purchase with a 203K loan.
  • November 29 2012
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