OfflineHello All.
Newbie here, who's been reading a lot on this site and majority of the book. Thanks to all you have provided their examples.
I've found a great REO (Bank Owned after unsuccessful foreclosure) up for sale, $75000. Local Property Appraiser site and Zillow.com (shows estimates of property and overhead shots of property) show equity at $165,000. I will be a 1st Time Buyer and would like to pull equity out at the original closing.
Is it possible to pull 40k in equity out at closing?
Or do I have to close, hold the property, until it seasons ( make some monthly payments - 6mths/1yr), and then re-finance or take out an Home Equity Line of Credit (HELOC)?
Thanks for any help.
(I've provided the definitions for the other newbies)
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It would depend on the bank that is holding the mortgage whether or not it has to be seasoned. Is 75K the total, or are all the legal fees, interest and penelty's yet to be added to the final price.....Jan
Thanks for the response. That is the asking price, so the fees would have to be added in making it around $80K. I would try to get it down about $5k, but wouldn't mind paying the asking, due to all the equity. Would I be able to use a flat 30yr loan to do that or more like a 80/20? Thanks.
Again, it would depend on the lending institution. A 30 yr would be sweet. Have you considered paying the full asking price to the owner (the bank) and asking them to finance it for you. Full price to them might look like a great deal to get things moving, and this way you would find out about the seasoning also. Sounds like you have a beauty of a deal. Just take the right steps on this one.......Jan
AH! I never thought about that option. I will ask and also check their website to see what their requirements are for a refinance. Great Creativity!
I just made an offer on a deal very similar to this one. My broker told me that I had to close twice to get the equity. If my offer is accepted, how can I get the equity in the first closing?
Leslie, after it's all done, please be sure to come back and update us on how it went. Thanks