I am contemplating buying at auction. Not focusing on any particular property at present but looking to pickup something below market like a morgagee bargain in the near future.
At present I'm like many in that I have been looking to purchase with a preapproval using either a LOC as a deposit or using the security on another property.
If I was to secure a LOC for the entire amount needed to allow me to go to auction would the bank need to do a valuation on the new purchase before auction and could they pull the LOC due to concerns with the purchase?
Do others buy this way and are there any implications ie. re pulling so much equity from the one property, higher loan interest rate, tax, moving forward with other purchases using this method, etc.?
How do others here like skater finance an auction purchase?
At present I'm like many in that I have been looking to purchase with a preapproval using either a LOC as a deposit or using the security on another property.
If I was to secure a LOC for the entire amount needed to allow me to go to auction would the bank need to do a valuation on the new purchase before auction and could they pull the LOC due to concerns with the purchase?
Do others buy this way and are there any implications ie. re pulling so much equity from the one property, higher loan interest rate, tax, moving forward with other purchases using this method, etc.?
How do others here like skater finance an auction purchase?