All Forum Posts by: Jo-Ann Pelletier

Thanks again. I would not finance the second home at all. I would be using the equity from home 1 for the HELOC and the cash out refi when it came time for that. I will definitely call my bank and ask what I could expect to get for the HELOC. Zillow's estimates are way lower than I would expect my house to appraise for because of upgrades like granite counters, etc (even an extra room that magically appeared over my garage :lol: ). I know its a risk but I think I'm ok with it. My inlaws are retired so I'm already taking that into account ($$$ and rehab time wise). Many of the houses I would consider don't need total gutting and much superficial work like removing the god awful wood laminate flooring and the like. A good number of them will likely require a new septic systems and there are some strict rules in MA that I need to learn more about. I would never add SF risking an out of control rehab. A kitchen refresh here or there but my FIL just remodeled my mother's entire kitchen and can easily do and has done plumbing, electrical, roofing, general carpentry, etc.

One last question I promise (well...). If the closing is similar to a regular house closing, could I expect or try to negotiate any costs into the final price and you said before the title contingency is not necessary (of course an inspection though) -- is it automatically included as the bank had to do this anyway when they assumed it on their books? Do you have some sample offer language you could share? I will probably ask a realtor friend to help me but I'm curious what one would look like. THANKS!!!!

Thanks much Wheatie for the advice. Using zillow as my estimate (pretty conservative for my particular house) I would be looking at most a 65% LTV after the cash out refi so yes the HELOC would be temporary.

Am I right in assuming this would be the best way to go without have to have a preapproval ready to go, especially as I don't know the propert(ies) I will bid on. I am really in the watching phase and will see how the market and foreclosures pan out around here.

Would I need a preapproval letter if I have ready a HELOC equal or above the bid?

First, thanks for all the great knowledge I have already gotten from this site. There are some real experienced people here!

I would like to purchase an REO -- not for a flip but for my in-laws who have never owned a home. Father in-law is very handy and would do all the work so in the end, it would be an investment.

I am wondering the best way to have the $$ ready to make offers. I plan to use the equity in my home (I figure we owe only about 26% of its current value) but I don't want to take a loan until I know if I can get an offer accepted. I don't have the 100 or 150k lying around and wonder if a temporary line of credit would be the way to go. Would banks accept that as proof of funds? How do I actually go about making an offer -- with an inspection and tax lien contingency? Am I best getting an agent to help with this?

So confused...