I’m located in Georgia, and I want to buy a foreclosure. If I get preapproved through a Fannie Mae lender can I buy at an auction or do I need to use a realtor? Also, can I get rehab money included in the loan (that is if the house is less than my approval amount)?
Thanks!
Auctions are usually done in cash and mortgage financing contingencies are not accepted. Work withe a Realtor that catches the new listings daily (automated searches) and make sure you get in the second a bargain comes on the market. This whether its a foreclosure or just a great undervalued buy! There are public auctions that the public are invited to, but from my own experiences the buyers get overexcited with emotions and bid at market-value!
As for the rehab money, you can do a FHA 203K rehab loan. It’s a great way to wrap the expense of the rehab and mortgage into one mortgage product. Good luck and find a good Realtor!
Yes, probably not and no.
You can buy a foreclosure, but probably not at auction. Many auction houses have a very specific time frame in which you have to pay in full or their are substantial penalties. I wouldn’t count on getting a mortgage through the hoops if the auction property needs to be paid for in 30 days or less.
YOu cannot obtain "rehab money" in the loan. You may be able to obtain a HELOC after you purchase.
Must auction wouldn’t allow you to get bank financing. The auctions that would allow you to get instutiional financing would only allow you to use their preferred lender.
Try Hudson and Marshall