FAQ: How will the appraiser gain access to a Maryland trustee sale property?
In normal real estate transactions, appraisers make appointments to view the exterior and the interior of the property so their report can be submitted to the mortgage lender.
When the buyer is purchasing a trustee sale property, access is not available to the appraiser until after the buyer takes title and gains possession of the property.
Purchasers that plan to use mortgage financing to fund the purchase at settlement should be certain that their lender will not have a problem when the appraiser is not allowed on the property. Some investors will have difficulty in obtaining purchase money financing for trustee sale purchases.
Many real estate investors pay cash or use lines of credit to purchase trustee sale properties. If financing is needed, it is easier to obtain a mortgage loan after taking title and making any necessary improvements.
Those who bid at trustee sale auctions should understand the risks and carefully review the conditions of the sale. Mistakes can be very costly. A bank line of credit or an investor partner can ease the burden of financing when you face cash transactions. The deposits are substantial and those who default on purchases can face the loss of their deposit as well as damages relating to the default.
As I have mentioned in other blogs, a good way to learn the process is to attend a number of trustee sales and meet and talk with the regular group of bidders until the process is fully understood. It is mandatory to have an attorney who is familiar with the trustee sale guidelines to handle your settlements. You may also need an attorney to handle the legal aspects of any necessary eviction of the property tenants.
Rose, Kentlands, Spring Flowers IMG_9376 A
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
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