how do you buy foreclosure homes and auctioned homes with bad credit?

Answer 1

Use cash. Without cash you need a loan. Bad credit tells a lender that you have a history of not repaying your debts. For them to loan you money you will have to make a large down payment, at least 25%-40%, pay a high interest rate, 6-12 points over prime and points up front, 6-12. These numbers a possible high and low value that will be set by the lender as they look at your credit history.

Answer 2

You don't buy auction homes unless you pay cash. Most auction homes require a letter of solvancy from a lender saying you can obtain a loan up to $XXX,XXX within 10 days or a cashiers check within a set number of days or you don't buy the home.

Foreclosed homes may be an option. Bear in mind some foreclosed homes are not financiable. But depending on how bad your bad credit is, some loans are not credit score based.

The best option would be to fix your credit to at least fair, then go forward.

Answer 3

Pay with cash, save up as much for a down payment as you can, and get a small home to start with.

With more equity in the property to begin with, your credit won't be as much of a factor. The bank will be confident they can sell the house for a profit if you go into foreclosure, because of the equity.

And, if you get a small house to start with, you can establish better credit and keep on time with a manageable loan. Then, after a few years, you can sell this home and purchase something larger, but possibly keeping a similar payment due to your better credit score.

Answer 4

just to function credence to the earlier posts, i'd challenge that your neighbor is amazingly a sort straws wanting an entire bale. this shouldn't artwork. If the husband is the only one on the indoors maximum loan documents, his credit would be thoroughly destroyed, and any purchase of a diverse domicile would could be on the spouse's call and credit purely. The husband shouldn't qualify for almost a decade, after a foreclosures. in keeping with Terry's techniques, you are able to dispute a foreclosures all you choose with a credit bureau. it fairly is an argument of public checklist and may be actually demonstrated. it is not going to vanish.

Answer 5

The financial aspect of purchasing foreclosed or auction homes is no different than purchasing otherwise. You will need financial approval one way or the other. If you purchase at auction, most require a ten percent downpayment immediately after the auction close, with the remainder to follow VERY shortly thereafter.

Answer 6

Where there's a will, there's a way. There are MANY places that are willing to work with you. Just do your homework!!!!