Foreclosure Financing

[Dustin Neal]

Title may be a bit misleading but I have a simple question regarding loans and foreclosures. Is it considered a bad move to obtain a personal loan in order to purchase a foreclosure? I only ask because it seems to easy and simple to be the right move, or maybe I'm over thinking it. For instance, if I was interested in a bank owned property that the bank wanted $40,000 for and I only had $20,000. If I had access to a personal loan for $20,000 that would allow me to purchase the property wouldn't that be the way to go, with the understanding that the interest rate on the loan is less than 6%?

[Stuart Birdsong]

@Dustin Neal:

Dustin, Are you purchasing this home at an auction or as a listed property? If you are purchasing it at your Public Trustees office, you will need cash or a Line of credit from the bank that is readily available to you when you bid on the property. If you purchase it as a listed property through a broker, banks don't have any issue with the buyer using a loan to purchase. If you are bidding against cash buyers it makes you a less viable candidate, but other than that it doesn't matter. Cheers!

Stuart