Investors find a large number of discount properties in foreclosure auction sales. The main problem with the foreclosure auction sales is that you need all the money most of the time to buy a property. In an auction, the highest bidder usually gets the property. However, sometimes the property does not sell because lenders set high bids. If the property does not sell, the bank buys it and they become bank-owned properties.
This is where the source of private money lenders are very useful. Having instant cash ready is very important to be able to buy property in a foreclosure auction. Private money lenders can close the transaction quickly. Especially if you are planning on flipping properties. It makes sense to get short-term loans from private money lenders as opposed to going to a bank or other traditional financial institutions. You can know more about the best private money lenders for real estate via https://www.baymountaincapital.com/.
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Most of the properties that are being auctioned are advertised in newspapers or you can find a notice that gives you the date, time and property information. You can also check on the county recorder's office of the state you live in. There are several judicial foreclosure actions, which needs court approval, and other non-judicial conducted by the trustee do not require any court approval.
Private money lenders are seeing the property as security and not your credit. So it is easier to get funding from private money lenders than hard money lenders. If you plan to keep your foreclosure auction property for a while, then you should go with a traditional lending institution.