Is this possible or am I think too out of the box?
-Purchase price = 48K
-Tax Ass. or appraised Value=89K;
-I acquire HML $ to purchase with the intent of short sale
-Before selling acquire a HELOC for the 41K of equity
-Excute short sale shortly after acquire HELOC
End result 5K-10K in profit AND 41K in HELOC
if you sell the property, the Heloc is due immediately as it secures the loan. You say it has a FMV of 89K; where does that come from??? If it is in bad condition, that number could be signifcantly reduced. More details needed.
DDC,
I have worked in the foreclosure department for a major bank for the last six years. If you were able to do what you are suggesting, and you came to me asking for a shortsale immediately after you took out a HELOC, I would flat out deny you, as would any other loss mitigator with half a brain.
Thanks,