I purchased a foreclosure from auction and I need to get a loan without an appraisal.?

Question

This is my dilemna.....I purchase a home at a foreclosure auction. The home is still occupied by the previous owner. My mortgage company (Merrill Lynch) will only give me a loan on the property if they can get a full appraisal of the property. Of course, the previous owner wont let me inside the property to appraise it because they just lost their house through foreclosure. It will be my responsibility to evict the person once I pay for the house but I can't even start the eviction process until I actually own the house.

I need to know is there a loan company out there that will give me a loan for $215k without having a full appraisal. My credit scores are in the high 700s so credit isnt a problem. I can only afford to put 10% down on the property maybe a little more.

Answer 1

You should call a Loan officer I feel is the best I have personaly worked with. I own a company involving real estate. Ask for Audrey (she is the owner) at Elite Mort. @ 209-527-0747. If there is a way to work things out she is the goto person. Tell her Barry reffered you. Good Luck!

Answer 2

Have you asked the current "tenants" if you can come in to do an appraisal? Why are they being allowed to stay in the property if the loan is foreclosed?

If the house has already been sold and the previous owners' loan foreclosed, the mortgage company with whom the previous owners had their mortgage would be the ones to give permission for the appraisal. The mortgage company could request an emergency eviction for suspected destruction of their property. The people would either allow for an appraisal, or the police would put them out on the street the day the emergency eviction order was signed and/or they could be arrested for destruction of private property.

Answer 3

Trying contacting the Mortgage Company who foreclosed on the property. See if they did an appraisal on the within the last year and if you could get a copy of the appraisal. It's a long shot but worth trying. Especially if it was a total debt bid, then the cost of the appraisal was worked into the bid amount

If your unable to find an solution, maybe you can bargain with the tenants. And offer them to stay another month to find a place to stay and that you won't do a eviction which could affect their chases of renting an apartment. If they leave on their own.

I've worked in foreclosure law and this can be a pretty effective way of working with the tenants

Answer 4

It doesn't sound like you actually own the property. Sounds like you made a bid to purchase and need to finance the actual purchase. Try going to your bank and see if you can get a loan without an appraisal. If not you should try a Mortgage Brokerage company. They have excellent Conventional programs out there that require little (drive by) or no appraisal.

Answer 5

ok, this might sound dumb.. but i don't know exactly where you're located, so if your money that you have permits, i would actually find a place for them to stay for at or about 6 months or so. the reason being is so that at least you can offer the tenants something instead of just putting them on the street.

cause honestly, if you did get the house through foreclosure, then you probably got a really good deal right? so then why not agree to house them for alittle while out of charity, that way at least you will have a good relationship with them and they might possibly leave, and not to worry about bad karma. then you can go in and do an appriasal if needed and a first appraisal hasn't expired. good luck either way.

Answer 6

You are not going to be able to get a loan without an appraisal. that is just not going to be possible. The bank needs to make sure that they real estate that they are GIVING YOU THE MONEY FOR is worth the amount that they are investing in it. I would also say that it is going to be just as important for you to see that appraisal as well since you also are investing in this home.

If the house went to auction, chances are you could call your local Sherrif's department who held the auction, and have them assist you in getting into the property to have the appraisal done. Either way, you are ABSOLUTELY going to want a police officer there to make sure nothing goes sour. Remember, the bank has taken this family's livihood away from them. Yes, for good reason. But they are not going to be easy to deal with at all.

Secondly, you are going to want to get this done as soon as possible. If they are being this tough now, chances are they are going to completely tear apart the inside of the property, and there is nothing you can do about it.

I would be honest in saying, i have not heard alot of great things about Merryl Lynch's turn times on their mortgages. I have heard that they are quite slow. If you need to get it done fast, I may be able to help you with that. If you would like to consult with me on this, feel free to contact me at timothy.kazee@americanhm .com and we can talk a little about this.

Good luck, and be very careflu in this transaction.

Answer 7

Bid with self belief that that is the purely value you'd be paying. The monetary employer is in possession of the resources and they have already negotiated the payoff of the liens with the lienholders. even as the resources is auctioned, there'll be a reserve minimal bid that the monetary employer will settle for. The words they have negotiated with the lienholders is in holding with that minimal bid. something else they get is in simple terms gravy. If the optimal bid doesn't meet the reserve value, the monetary employer holds onto the domicile and places it on the open market as a foreclosure. yet, whoever buys the resources at auction - or as a foreclosure sale - will be free and sparkling of all previous liens on the resources.

Answer 8

option 1.) use a private money lender that will accept a drive by appraisal, or that does their own in house valuations (perhaps even a BPO - broker's price opinion)

option 2.) if the deal is worth it, pay the tenant some $$$ to let the appraiser in