This topic contains 7 replies, has 2 voices, and was last updated by Anonymous 8 years, 7 months ago.
- May 5, 2011 at 4:12 am #202907
I’m thinking of buying a property that has been taken away by banks (foreclose) so that I can do some renovation and sell it (flip it). I heard that banks often auction these properties. Where can I find a listing of such house? I tried MLS but don’t think I saw any. Any suggestions or experiences would be appreciated. Thanks.
- May 5, 2011 at 11:39 am #258688
You can go to a realtor in the area that you are interested in and have them search for houses that are for sale by lenders – mainly the big banks. They will likely be power of sale rather than foreclosures. There aren’t a lot of these in Toronto and I don’t think they are often sold by auction.
This isn’t a good game for the unskilled or someone without deep pockets.
- May 14, 2011 at 12:48 am #426075
Ditech.com. Debt Relief Consultants.
- May 14, 2011 at 1:08 am #426076
Go to a local bank and take out a fixed rate fully amortized 2nd mortgage. They don’t charge any fees for this.
Leave your money in your 401k earning a nice rate of return.
Make extra payments on the 2nd mortgage when possible to pay it off earlier.
Don’t use your credit cards after you consolidate!
- May 14, 2011 at 1:30 am #426077
I would leave your 401K alone. You should only tap into that for emergencies. Sounds like a home equity loan might be the best route for you. The interest is tax deductable too. Be careful to not get into debt again. Not sure what you mean by a payment plan. If you can set up a schedule and stick to it that would be an option depending on the interest rate. If the Home Equity rate is less that would be better.
Be careful of those debt services too. They can actually make your credit worse by following their payment schedules. You get out of debt but end up with bad credit.
- May 14, 2011 at 2:08 am #426078
You should be able to get a second mortgage which would probably be lower than any payment plan in which you don’t even have to touch your first mortgage and keep that good rate. You definitely have enough equity to do so.
- May 14, 2011 at 2:44 am #426079
A home equity line of credit would make the most sense. I just had this same scenario and after much research and my CPA this is what I did. Borrowing on the 401k is a definite no no-don’t even go there. Refinancing would commit a large amount or all of your equity along with high closing costs, points, and little flexibility on payback terms and amount borrowed.
Home equity line is being offered from competitive lenders at prime + 0% with no closing costs. You can borrow as little or as much of the total line when you want and pay it back over flexible terms without refinancing large amount at now higher than your current rate. Refi your prob looking at 6.5% ballpark with closing costs and all negatives above vs prime (8%) with much greater flexibility and save the difference by no closing costs.
I just did it myself and happy about my decision. Good luck!
- May 14, 2011 at 3:40 am #426080
There’s some really good advice here. With that kind of equity in your home, you should really have some give a mortgage analysis for you.
You are certainly on track by looking to consolidate your bills and let your home do the work for you.
Definitely leave the 401k alone. I can show you a couple of different ways where you can keep everything the same, but by restructuring your debt, you can set yourself up for retirment.
Feel free to contact me at [email protected].
Or you can check out my site at caseycasperson.com
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