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How does house auctions work with financing?
I am just wondering how financing works if I want to get a house from an auction? I see on auctions.com where they explain how their auctions work. I am not really understanding the last part. This is what it says:
Winning bid = 100,000, plus $5,000 buyers premium (5% of winning bid amount) = final selling price of $105,000. Total down payment due at signing = $5,250 (5% of $105,000) less your cashiers check remaining to be paid by personal check.
So my question are; Can I use a home loan that I am approved for at an auction? What dollar amount do I need when the auction is over? Do I need the full amount for the house or just the 5%? If I need the full amount of the bid in cash, will the bank give me a check for the house?
If anyone can answer these that would be great. and if there is any other information that would be helpful to me too would also be great thanks.
3 Answers
- acermillLv 710 years ago
Chances are VERY low that you will be able to use a mortgage loan to purchase a house at auction. You have already read the 'down payment' requirements. Most auctions will give no more than ten days after the auction date to pay the remaining balance. It would be extremely difficult to get a mortgage approved and paid out in that short time period.
- Michael SLv 510 years ago
usually you need cash when buying from an auction because they are usually foreclosures or tax sales they want the money up front. I got a home from an auction the market value was about 225k but I got it on foreclosure for just 138k it was a bargain and needed work but in 6 months i was up nearly 60k after repairs.
- Anonymous10 years ago
In order to buy a house from an trustee sale (foreclosure auction at the county foreclosure) you need all cash. In Arizona you can put 10% down the day of the auction and the balance has to be paid off the next day.
now answer my question
