So, I gather this is a complicated feat? I would like to purchase a house that has been foreclosed on during the construction process, before the certificate of occupency was obtained. Can I get a construction to permanent loan to finish the house and then modify to a permanent mortgage? The listing realtor said that unless I had cash for the purchase price (which I don't, although I can put 20% down) then I'd have to gamble with my own money to finish the house enough to get the certificate of occupency then *hope* a bank will give me a loan to purchase the house. This scenario really makes no sense to me. There must be another way to do this?
Any ideas or insight would be appreciated. Everyone I call gives me a number for someone else to call.. .
Thanks in advance!

you would need to approach this as a construction to permanent loan. You will need to have a contract with the current REO bank and also a contract with the new builder. You will probably need to have 20% down based on the total combine price of purchase price plus construction cost. Depending on your credit, debt to income ratio, and all the other factors, you should be able to wrap the purchase and complete of construction into on C to P loan. For example: my company does C to P loans at 70% loan to value, however we do end loans to 90% (depending on your state maybe 95%). The construction loan would fund the completion of the home and your construction loan could be modified to your permanent loan once the home is completed and the certificate of occupany is issued by your county government.