[crzygrl]

I am interested in buying a foreclosure in my neighborhood. It is very cheap and probably will go up to auction this month. My question is on bidding day when the court house wants a deposit is this something that you can get a loan for? Not sure how this works. ThanksWe have already been approved for a loan well over the amount of the foreclosure. This amount for another house we were interested in buying but that fell through. I just didn't know how foreclosures work with the deposit usually being $15,000 - $20,000. You have to pay this when you when the auction is finished in a COD formI already know the house condition so I am fully aware of what I would be getting into. This house is directly across the street from me. It is in foreclosure for $175,000 less then what it is worth. It is a steal to get this house.

[oncebtn]

you will need to go to your bank and be pre approved for a mortgage on this house up to a set amount before you bid.

[Liz F]

You need to GO TO A BANK and ask what you're entitled to borrow before you try to BUY A HOUSE.. Make sure any contract of sale is SUBJECT TO FINANCE OF YOUR OWN CHOOSING, that part is very important.You probably will only be able to borrow 95% of the purchase price, unless its small enough that you can call it a personal loan instead of a homeloan, however this means a higher interest rate.

[RealEstate]

The deposit you give IF you win the courthouse auction has to be a cashiers check or money order.So no, you cant get a loan for that.Let me also tell you this, I dont suggest you try and buy a foreclosure from the court house. For a lot of reasons, the main reasons being you dont know if is has any other liens on the property. You most likely have NOT done a FULL inspection on the property. Who knows what if anything is wrong with it that you cant see.The best way to buy a foreclosure is to contact a local realtor. Tell them what kind of house you want and it what area, and tell them you want them to email you ALL foreclosures that meet your criteria. Then as soon as you get one, look at the pictures and if you like it set up a showing with your realtor.Then if you like it you can put in your offer. Remember to already have a approval letter before you do any of this because you will need that before you put in your offer.Remember you DONT pay the realtor ANYTHING for them helping you the seller pays all the commissions. So dont hesitate to have them help you.

[Marcus]

The norm is 10% of the purchase price either AT the auction or within a very few days (like 5 or 10). So about the only way to get your 10% is to use personal funds or borrow the funds separately from the Mortage you will need to apply for afterward.You need to go watch the process BEFORE getting involved in the process or get taken. Many times these foreclosed homes are completely stripped (carpets, cabinets, light and plumbing fixtures, toilets, tubs) and then you put in that 10% and find NO bank will finance the remained for you and the deposit is usually NONREFUNDABLE.It also occurs to me that if you go out and "borrow" that 20K you may no longer qualify for the loan.The current mortgage hold has the right to reject any and all bids and just put the home in their own portfolio for future sells if it is that much of a "steal".