All Forum Posts by: Kenneth Fite

@Wayne Brooks

Thanks Wayne!  That’s what I was looking for. We’re already so far in the process with the heloc, it would be easier to just go ahead with the heloc than to run credit again for a personal loan.  I just needed some feedback on if I was about to make some obvious fatal error.  I appreciate the response. 

The idea behind listing it was to test and see if we could get close to our goal, and we did, so there’s no intention on not selling it to someone who has put in an offer. Honestly we live in a rough neighborhood, and while I wanted to get it in the market, I didn’t expect a good offer that quickly. The problem comes in with the timing of the loan. We started this process almost 2 months ago, and it got held up with an old unreleased lien through Citibank. We should have that cleared this week sometime. The need comes down to cashflow for relocation and any necessary repairs that might come up after inspection. I guess the question is, can I finalize and utilize the heloc after the house is under contract, understanding it will be paid off and will go away at the time of sale?  No intent do defraud anyone here. Just trying to work out the logistics. 

My family and I are relocating out of state and are near the end of the process of getting a Heloc on our home specifically for cashflow to cover moving, earnest money, and setup expenses. Our realtors wanted to go ahead and do a trial listing on the house, and we ended up getting a few good offers. The timing of accepting an offer and of the finalization of the Heloc are going to be nearly overlapping.

My question is:   Is there a danger to the sale contract in going ahead with the Heloc just prior to or just after accepting an offer, OR to the new mortgage we would be seeking in the following few months?  Again, the sole purpose is to have cashflow to meet certain deadlines that will likely fall before closing on our current home.