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From: Anonymous
A friend of mine knows a couple that has defaulted on their home loan and the bank is going to repossess the house in the near future.
The house has been valued by a bank last week at $310,000 and the amount owing on the loan is $250,000.
My friend wants to know what he can do with this sort of deal?? He doesn't have any property at the moment and not too much money either!
I suggested he could just offer them $260,000 or so for the house. Buy it and then refinance it the next day with a different bank at $310,000 to get his cash back out for the next deal. I realise he has to pay mortgage insurance and application fees twice, but at least he will get his money back.
Has anyone done anything like this? any suggestions?
vendor finance by getting them to leave money in the deal. Stacking the contract etc etc??
Thanks
Anthony Anonymous
A friend of mine knows a couple that has defaulted on their home loan and the bank is going to repossess the house in the near future.
The house has been valued by a bank last week at $310,000 and the amount owing on the loan is $250,000.
My friend wants to know what he can do with this sort of deal?? He doesn't have any property at the moment and not too much money either!
I suggested he could just offer them $260,000 or so for the house. Buy it and then refinance it the next day with a different bank at $310,000 to get his cash back out for the next deal. I realise he has to pay mortgage insurance and application fees twice, but at least he will get his money back.
Has anyone done anything like this? any suggestions?
vendor finance by getting them to leave money in the deal. Stacking the contract etc etc??
Thanks
Anthony Anonymous
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