Ask Me Help Desk - Home Equity Loans

Can someone give me the low-down on Home Equity Loans? I need to fix up my house in order to sell it. I have no cash-on-hand but I do have somewhere between $60 and $70,000 in equity. The biggest kink is that I am unemployed with the worst credit on the planet because I have spent the last 3 years caring for my grandmother. Recently, she passed away and I can finally sell the house but have been told that I could lose anywhere between $20 and $40,000 if I don't make all the necessary repairs. Most of the repairs are cosmetic but I do have a couple of major repairs - central air is out is probably the biggest. I guess what I want to know is just how these type of loans work and if I will qualify without a job and sh*%ty credit? Of course I plan on returning to work after the house sells but with all that needs to be done I just don't see how I could do it unless I worked at it full-time. Looking for any and all suggestions...

Thanks!
Michelle

Quote:

Originally Posted by dfwswf

Can someone give me the low-down on Home Equity Loans? I need to fix up my house in order to sell it. I have no cash-on-hand but I do have somewhere between $60 and $70,000 in equity. The biggest kink is that I am unemployed with the worst credit on the planet due to the fact that I have spent the last 3 years caring for my grandmother. Recently, she passed away and I can finally sell the house but have been told that I could lose anywhere between $20 and $40,000 if I don't make all the necessary repairs. Most of the repairs are cosmetic but I do have a couple of major repairs - central air is out is probably the biggest. I guess what I want to know is just how these type of loans work and if I will qualify without a job and sh*%ty credit? Of course I plan on returning to work after the house sells but with all that needs to be done I just don't see how I could do it unless I worked at it full-time. Looking for any and all suggestions...

Thanks!
Michelle

I think it might just be possible to get a home equity loan but proabably one that has terms that are not very attractive, i.e. rates, etc. Consider finding employment first, then consider doing the cosmetic repairs yourself if you can. The AC is probably one issue you can't do w/o paying for assistance from a HVAC company. That's about all I can suggest, but just beware of predatory lenders if you go for the home equity.

Quote:

Originally Posted by dfwswf

Can someone give me the low-down on Home Equity Loans? I need to fix up my house in order to sell it. I have no cash-on-hand but I do have somewhere between $60 and $70,000 in equity. The biggest kink is that I am unemployed with the worst credit on the planet due to the fact that I have spent the last 3 years caring for my grandmother. Recently, she passed away and I can finally sell the house but have been told that I could lose anywhere between $20 and $40,000 if I don't make all the necessary repairs. Most of the repairs are cosmetic but I do have a couple of major repairs - central air is out is probably the biggest. I guess what I want to know is just how these type of loans work and if I will qualify without a job and sh*%ty credit? Of course I plan on returning to work after the house sells but with all that needs to be done I just don't see how I could do it unless I worked at it full-time. Looking for any and all suggestions...

Thanks!
Michelle

Cut your losses and sell it as is. While ideally, you should fix it up, you are not going to qualify for any mortgage if you are unemployed. The condition of the property may also hinder your ability to get a mortgage My point is that while you are fixing things up, you are losing your own income and it could take months. Get out now and get on with your life.

Were you told you would lose $20-40K or that you would have to lower your price by that amount? There is a big difference. If you have to spend $20K to be able to sell for a $40K hugher price is that really worth it? There is really no guarantee.

I would try selling as a handyman's special and get on with your life.