Mt. Laurel, NJ · Member since 2019 · 12 posts · 2 votes
Hi All!
I am very close to closing on a short sale and just ran into a huge brick wall with the mortgage. They said they wont approve it now unless the foundation and roof are fixed first.
I am trying to figure out a way to still make this deal work and was wondering if the community had any ideas?
The option that I thought of but don't know if its possible or a smart move to make is:
Purchase the house in cash. Right after closing take out a HELOC on the home to make renovations and replenish my bank account.
Some info for your ideas:
1) The purchase cost is basically my entire bank account.
2) I will need to put some money into the house right away.
3) My plan would be to move in and list there while I slowly fix the place up. I would stay there until I decide on my next move then rent the place out.
Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
6y
Get a hard money loan, that way you can avoid the mortgagee's repair requirements. This is your best move - I think draining your bank account is a bad idea.
Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
6y
@Paul Quinn
Buy with 20% your cash and 80% hard money. Finance the construction costs yourself. HELOC generally you cannot pull until it's seasoned 6 months or so, and lenders are very tight right now on Refi's and HELOCs.