How can I finance a home without an appraisal?

Question

I recently was the high bidder at a sheriff sale in Stark County Ohio. The owner will not allow anyone on the property for survey or appraisal. All that is available is the 3 court appraisals that were done but they are outside only. I tried conatacting the foreclosing bank and they are of no help. I cannot get the guy out of the property until I complete financing and I cant seem to get financed without the appraisal, any help would be much appreciated

Answer 1

Welcome to the world of real estate investing. You are almost in a catch-22 aren't you?

What make you think this is a good investment if you have not been able to see if there are any necessary repairs and to what extent?

Until you legally own the property the current property owner is in his right to forbid anyone from coming on his/her property.

Now there might be away to iron this out. See if you can make contact with the present owner, find out if you can give him some cash to move out and further allow the appraiser and others you need to complete the transaction on the property. Before you actually give him cash have him sign a contract as to what is offered as well as the date they are suppose to be out, also there is to be no damage to the property and they can pick the money up when they turn the keys over to the escrow closing officer or another third party that you two can agree on and all their personal possessions are no longer in the property.

On the day they are to move make sure you and a lock smith are there to change the locks and give the OK to the closing agent to give them the money you have agreed on.

At times this can be accomplished prior to the sale date which would prevent this from happening.

I normally do the same in pre-foreclosure to appease and get the current occupant to agree to move without any or further damage to the property. They normally need some seed money to move so it is a win win for all concerned.

It is the price of doing business and most time prevent the long eviction process.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

You can not raise financing against the property without something that will show the value. Some private investors will look at the loan but they are going to charge you a lot in terms of fees and the interest rate.

If you are not the legal owner then you can do nothing to gain access. The owner controls access. Technically you are not the owner at this stage. The bank or the present occupant is the legal owner.

Speak with a lawyer if you want to clarify the legal rights of the different parties.

If you can raise temporary financing against another property then you can close the purchase, evict the person and then refinance. A bank might lend something against the this property using only the tax value if you keep the amount very low. The commercial loan department are the folks who will consider this. Not the residential loan people.

Answer 3

This is one of the pitfalls of buying homes at auction like this.

You might have to find a local bank that will give you a short-term portfolio loan just to take full possession of the property, then get normal financing afterwards.

I don't know if you're buying it for yourself to live in or not, but assuming it's an investment property, it's tough to impossible to find normal financing without an interior inspection. Owner-occupied would be somewhat easier, though still not widely available.

I'd pick up the phone and start calling some of the local, small commercial banks and see if you can find someone who is interested in helping you get the deal done. They're out there.

Answer 4

you are going to have to get the sheriff to go with you as the legal owner and the appraiser to get this done. If you are going to live in the property or use it for investment then there are several companies that use AVM for value and no appraisal may be needed if there have been many recent sales of like or similar properties in the area. If You live in TN or KY I may be able to help you.
I am a mortgage banker

Answer 5

There are lenders who will do the financing without an appraisal. One of my competitors, Option One, will run an AVM. Ask your loanofficer or broker to contact his/her rep and have them run it. If that does not come in at value and you do need to get a full appraisal with interior photos, you will have to talk to the the sherifs dept. Be aware though that the advise people are giving is right on. I know of several investors who will by from the courts without ever even seeing the property. Welcome to the game, and thanks for playing!!
Good luck!!!

Answer 6

Get the help of a good real estate attorney. You won't be able to do this on your own. Your are going to need a court order served by (probably) the sheriff's department to get access, if it can even be done with just, I assume, a tax sale lien.

Answer 7

You have an appraisal already, use that one. Rule#1 when you get in this kind of business, you are going to meet the best people in the world. NOT. They all go to Church and talk to GOD, NOT. Good luck.