Buying at the Foreclosure sale auction requires 100% cash. New Light Financial has addressed this challenge with a program that funds 75% of the cash purchase price. This type of loan allows investors to leverage their investment on a 4 to 1 basis.
The foreclosure auction, or Trustee's Sale as it is also known, occurs every weekday on the county courthouse steps in California. It is the only place where you know you can buy real estate any day of the week and, in most cases, at a considerable discount. Historically this investment space has been occupied by a very small group of investors who have capitalized on the opportunities time and time again. The limited participation is due to the fact that in order to buy at the Trustee's Sale you must have 100% of the purchase price in cash. Most investors are not in a position to buy one property for all cash much less multiple properties.
New Light Financial, Inc. (NLF) has addressed this challenge with a unique program that funds 75% of a cash auction purchase on the spot on the Courthouse steps. This type of loan allows investors to leverage their investment on a 4 to 1 basis. Thus allowing those who would never have been able to participate at the foreclosure auction before an opportunity to invest. Even those investors who don't need the capital find it advantageous to leverage their funds on a 4-1 basis.
Success at the Foreclosure auctions requires more than just cash, due diligence is key. Having all of the money in the world won't help if you aren't diligent about research on each and every property. NLF provides investors with thorough and comprehensive information with regard to the value of each property selected as well as any issues related to title. This service is provided at no cost to active borrowers. NLF will also bid for clients on the courthouse steps, which allows investors to utilize their time each day at more productive endeavors than standing at the auctions and bidding against professional bidders. The normal cost for a professional bidding service is $4,000-$6,000 for a successful winning bid. NLF charges $0 for bidding which means that investors have professional bidder representation for no cost no matter how long it takes to win a property or how many properties you win.
NLF goes the extra mile to provide the investor with all of the tools necessary to be successful at the Foreclosure auction and the investor pays nothing for any or all of these services unless or until a property of is won and a loan is originated.