Using Home Equity line of credit to buy Foreclosures

I did a topic on Home Equity line of credit once. It is the a credit line based on the equity on your house. It is becoming a hot product once again. With the mess that Sub-prime loans have created many homeowners have defaulted on their homes and are facing foreclosure. The home Equity line of credit is based on prime rate. Prime rate is now 7.75 percent and depending on which lender you use it could go as low as 7.1 percent, not a bad rate for a second home loan.

The reason you should do this is becuase the price of houses are falling once more. They are falling from record highs. The second reason you should do this is becuase it can allow you to generate income. A second and third home can generate income to help pay off your loans because you can turn it into a rental property and get a steady flow of income. The third reason to get a line of credit is to enter the Home Improvement Business, so that you can buy fixer uppers at a low price, fix them and sell them for a higher price.



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