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buying an occupied house at auction

Got a couple of questions...when buying a house at a foreclosure auction that is occupied and the occupants do not appear to be moving, who is in charge of and who pays for the eviction--the mortgage company or me once I take ownership??? 
Also, what kind of problems if any do I expect from my mortgage company when I try to finance this house.  For example, a mortgage company normally would require an appraisal of the property (inside and outside) correct--I mean how do they insure that the house is worth what I want to borrow??  Now how does an appraiser get into a house that is still occupied by less than hospitable former owners??  And what if any recourse do I have it they trash the place before they leave?
And what other issued might I expect.  Any help is appreciated.  Thanks
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January 30 2009 - Burrillville
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Answers (3)

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Well in RI--at least at the three foreclosure sales I've attended, you bid with a certain amount in certified or bank check.  If you win the bid you turn that check over and have 30 days to close--you can obtain financing.  You do not have to have the total amount in cash the day of the sale.  closing is set for sometime down the road but the  must close by date is stated at the time of the sale and is in the documents you sign at when you win the bid
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January 31 2009
What lenders do when they have tenants in a home where the want them to go away is they offer them 'cash for keys' which is a short contract that states that john doe will leave the property by such and so date, leave the property in good condition and in return they will be handed a check for X number of dollars. This is an attempt to quickly gain control of an occupied property while minimizing damage to the home.

Last one I did the renter made as much money on the deal as me!
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January 30 2009

You cannot finance your purchase of a foreclosure home at auction. In most states, you will need to have cash either the day of, or the day after the auction.

Of course YOU will be responsible for evicting the occupants after you buy the home, it will be your home that day, not the previous owners. Depending on state law, and your negotiation skills, this might take an action for forcible entry and detainer plus getting the sherrif to actually effect the eviction.

Your questions about appraisal and loans don't make sense. You will simply not be able to get other financing until after you buy the home, evict the previous owners and take possession. There are some hard money lenders who will give short term loans, expect to pay 30% downpayment, 2 or 3% upfront fees and about 17% interest while you have such a loan.

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January 30 2009
 
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