How To Finance A Foreclosure – The Real Estate Foreclosure Process With Jennifer Beeston! #Finance

today I’m going to talk to you about how to Finance a foreclosure so this is a question I get a lot and I get it like so I came in the business in 2007 so it

was right as the housing market collapsed so the bulk of my business growing up as I like to call it and the mortgage industry was financing foreclosures so it’s something near and dear to my heart and something that everyone should understand so today I’m going to talk to you about a

couple different types of foreclosures and when and when when and when not a traditional lender can help you out okay so the first thing is foreclosures that happen on the courthouse steps yes that is a real thing so sometimes it happens is a property will be offered on the courthouse steps now

there’s a couple of things with those usually you don’t get to see the property beforehand you won’t necessarily know if it has any liens it’s literally like I’m seeing a picture of a house and being like hey do and paid five hundred thousand dollars for this

that’s what it’s like and there’s a lot of savvy investors who know the property market well enough where they can go yeah that’s good or you know heck no like that’s a terrible idea but the key thing is is that if you need a Loan a traditional lender

is not what you’re going to get on this you need to be able to pay cash money right there on the courthouse steps and a traditional lender we don’t work like that we have to be able to we’re not just looking at you we’re looking at the property so unless we have title work

um seeing if the property has any liens we don’t know about what if it’s red-tagged that used to happen a lot so what a red tags house means is that it’s in violation of something so what would happen back in the day is people would buy stuff on the courthouse steps and then they

would find out like oh my god you know this house has a hundred thousand dollars in right tag fines so they thought they were getting a deal but in reality no deal no deal and they had to fix all that stuff otherwise the the county keeps on assessing fines against the property so you really need to

make sure if you’re going to those courthouse steps that you this is like savvy investor stuff I’ve been doing this for what feels like 400 years I would never buy a house on the courthouse steps unless I like knew the person who lived there and I could sneak in check everything out

have my title people do the title work like know just know but once again if you’re a savvy investor you’ve got a lot of cash on hand that’s great now there are hard money lenders that will do Loans for properties such as that what a hard money lender is basically

it’s your uncle out in an alley who’s gonna give you and you know you Tom that you’ll do 30% he’ll do the other 70 and he can make it so that you have the cash to go do that um and look some of those guys are really legit and wonderful but hard money is expensive money

it’s like not cheap you know don’t expect it to be 3% expect it to be like 9 to 10 to 12 depending on the circumstance plus terms that are less than savory that’s why it’s called hard money as and you have to be hard up to get this so courthouse steps now let’s talk

about one of my favorites my favorites are the ones where they’re represented by realtor so you’ll see HUD homes and you’ll also see you know a Fannie Mae or a Freddie Mac foreclosure 9 out of 10 times they’re gonna have a realtor representing that property and the reason is

they want the most money they don’t want to just hope someone shows up on the court steps and writes a check they want real buyers and the way to get real buyers is to get real lenders that’s right so that works just like a normal sale the only difference is and I always tell my clients

I’m like look you’re buying a foreclosures so here’s what you need to expect it’s gonna take a billion years for them to respond to anything you ask you cannot nickel-and-dime a foreclosure like a foreclosure bank like an asset manager if you’re like I need the the

holes replaced in the bathroom from where the pitchers were ya know you shouldn’t be buying a foreclosure um oh there’s a leak under the sink we need you to know know most foreclosure properties are as is meaning that’s the way it’s gonna come okay you some foreclosure

properties are actually really nice back in the day Fanny used to clean up a bunch of them and they’d like to new carpet or paint teen depending on what the realtor suggested so they could get the most money but if it is falling down if it is a total excuse my language but a POS um you need

to make sure you tell your lender like hey I went in the house and like there’s no toilets is that a problem cuz the lender will probably say yeah that’s a total problem we have to get you qualified for renovation Loan and whether or not the foreclosure bank will go for

a renovation Loan is 50/50 if they’re working with a realtor generally the realtor has already told them that they’re gonna need cash or renovation Loans so sometimes you’ll see in the listing that the property requires a renovation

Loan if you just want to get a renovation Loan so that it has wood floors granite and nicer walls probably not gonna go with that because but you have to keep in mind is they have a dead asset right now so they made the Loan on the expectation that

they would be making money every single month that is not happening right now it is dead so they want it to come back to life and make them money or they want it out of their hair and if you decide that you want to do like a 90-day escrow so that you can get new paint and floors in the houses in

decent condition the odds of them going for that are slim like the house would have to be on the market for a long time for them to consider that because they need that asset making money okay let’s see here what else Oh auctions now the options are really tricky because there’s like 50

different types and it depends on who the provider is so sometimes they’ll be like back in the day there are these huge options and like you know countrywide or watching mutual whoever it was the time before they got acquire would do these huge options and they would have lenders there to get

you pre-approved and everything else and so basically they were cutting out the realtor but they were still giving you the option to inspect the property do an appraisal and all the stuff you would normally do when you’re buying a house something like that can be a really good experience and

the one thing that I experience consistently with all of these is the title and escrow companies that they would use were really would take forever so you just have to have a sense of humor but you need to know what you’re going into so you want to make sure with any auction you read the

terms and conditions because what I’ve seen with some of the online ones like they have a lot of bite to them you know it could be like yes we’ll let you get a Loan however if you can’t get a Loan you have to give us five percent non-refundable

like there are some terms and conditions that I’ve read over the years where I’m like you would have to be crazy to even fit in that option that’s insane so it’s super important that you read the Terms and Conditions and that they allow for a lender and it’s usually

pretty clear and easy to determine if you can have a lender or not but the normal stuff that you’d have like a Loan contingency generally evaporates with auction sites so be aware of that and the key thing with any of this is make sure that the lender you’re working

with understands foreclosures and has been in that market you know I know there’s a lot of great new lenders they’re great they’re talented like they were like I was when I was you know chomping at the bit but it does help to have someone who goes okay did you look at this this

and this okay here’s the problem here’s this an experience does help with that so just make sure that whoever you’re talking to you know if they’re not experienced they at least take the time to go read the auction site for the terms and conditions and help you out with that

because if they won’t even do that like why are you giving them your business why don’t don’t do it there’s a lot of good lenders that will help you not make a mistake so make sure you look for them questions comments as always I’ve got to do my pitch I’m

licensed in 37 states so if you need anything I’m here for you I do mortgages but yeah hope that helped