Purchase a Bank Owned Property using an Equity Line

4 Replies

Has any one offered 'cash deal' to a bank owned property using your Home Equity Line? Is it possible? What is the up/down side? It's 4.75% rate. My original plan was 80% cash and 20% with my equity line and then once I got the deed start a 'delayed finance' deal but now I reconsidering and may just use my entire equity line to fund the deal, keep my cash and not deal with closing cost etc. Any advice?

@Sheilah O'Shea  

What is the min payment for the line? They can be quite high at 1-1.5%. I would if you can swing the payments go for it. You most likely have a lock option as well for a nominal fee. You would save on the mortgage/closing costs.

Thanks @Michael Barbari.

I will investigate the lock and minimum payment. I need to respond to bank tomorrow for my "final and best offer" JOY!

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@Michael Barbari

Another cash offer was on the table and bank came back with 'final and best offer'. The bank owned the adjoining lot which also was on the market from the previous owner foreclosed on. They trumped me by adding the vacant lot into the deal with the SFH so of course I didn't get it. Can't blame the bank for wanting both off their books. Next time...

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