Posted by Lauren IN on March 18, 2004 at 01:04:48:
It looks as though First Union Bank merged w/Wachovia, which is where I’ve currently got my line of credit. That company is swallowing up everyone! As for short sales in NY NJ, I’m only familiar w/IN currently. I would find out what paper publishes legal notices like foreclosure listings (maybe call the courthouse to find out), get a subscription, and from that extract the list of properties/homeowners who are in trouble. You could probably find the paper at a bookstore, but not all bookstores carry what you’re looking for.
Lauren IN
FlexReserve lines of credit, suggestions? - Posted by Lauren IN
Posted by Lauren IN on March 01, 2004 at 14:32:20:
I’ve got a FlexReserve line of credit for bying houses using my stocks as collateral. My bank/brokerage has now merged with another. This new bank loans only 60% on the value of stocks, while my original bank loaned on 70% (my account is being transfered whether I like it or not), which will reduce my credit line. Does anyone know which banks could give me the best rate(s) for this type of line of credit?
Any input appreciated, thanks,
Lauren IN
If your getting 60% consider that good. While not 70%, this is still a good advance rate on securities that change in value daily.
A couple of thoughts to improve the advance rate.
How about selling the stock and putting the proceeds in the bank in the form of a CD? The bank at that point has no risk, so you should be able to borrow 100% of the CD value. In addition, because the bank has no risk, they should give a lower rate. Finally, you don’t have to worry about the “mark to market” (i.e., if the value of the securities falls below the 60% level, the bank will be calling you to make up the difference). Yes, you’ll pay taxes on the sale of the stock. However, I would assume that your passive losses from real estate would mitigate this.
(2). If you own other properties, why not use them as security instead of stock? This should also improve your advance rate.