# Home Equity LOC to buy while selling



## MrAdventure (Feb 26, 2015)

I'm looking to sell my house and buy another one for our growing family. We still have a bit of renos to do before we sell, but a great opportunity (foreclosure) came up.

We're most likely going to wait until we sell our house (prudence?), but I'm interested in what the other options are their downsides/upsides. I have seen that a Home Equity LOC is an option???

Any clarifications on this and/or alternatives would be appreciated.


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## Just a Guy (Mar 27, 2012)

Can you buy the foreclosure? If not, it probably won't be around too long. There are a number of ways to buy the place including a heloc or bridge financing. 

Personally, I'm not a fan of renovating to sell. Most people will renovate as soon as they move in. Make sure the place is clean, and put it up for sale.

Your question isn't really clear though, I'm not sure what you are asking.


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## MrAdventure (Feb 26, 2015)

Thanks. I'm asking: What are the options. What are the downsides/upsides to said options.


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## Spudd (Oct 11, 2011)

Can you afford the new house with the equity in your old house? If so, then yes, a HELOC should work. If not, you will need bridge financing from the bank (this is where they loan you enough to cover both houses temporarily, on condition you will repay when you sell the house). We did bridge financing once, it was not a big deal.


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## MrAdventure (Feb 26, 2015)

We'd conservatively have 62% of the asking price after selling our house. So that sounds like we'd be looking at Bridge Financing?


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## Just a Guy (Mar 27, 2012)

There are no real downsides to either as they are meant to be short term. I think bridge financing has a little less paperwork and maybe a few less fees than a heloc but, in the grand scheme of things, the price difference is probably negligible. Talk to your bank and see what options they give you, these days borrowing money isn't all that easy.


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## dougboswell (Oct 25, 2010)

Bridge financing can be only attained if you have already sold your present home and it closes after the home that you have bought closes.


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## Just a Guy (Mar 27, 2012)

Depends on the bank I suppose, I've gotten bridge financing during the boom times where, if you sold your house before buying a new one, you had a good chance of being homeless. Of course, selling a place back then wasn't the problem.

Best course of action is to talk to the bank and let them find you a solution. They are going to make a ton of money off of you, so they are motivated to find solutions in this kind of situation.


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