Rzrback_99[at]hotmail.com wrote:

- quote -

Yes, you can use loan proceeds for anything you want to -
subject to any contractual limitations you agree to with the
lender. Whether, when and where the interest is deductible
depends upon what house is security for the loan, your
personal residence or the property you're buying.

- quote -

I would have to know a lot more than I want to about your
personal finances to answer that question.

I suggest you consult with local tax professional who
specializes in real estate taxation (and perhaps a real
estate attorney as well) BEFORE you sign anything.

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Rzrback_99[at]hotmail.com wrote:

- quote -

I don't know the appropriate group. But I have two comments:

1. Talk to a loan broker - they can give you the answer to
your question.

2. Unless you have enough money to lose your investment if it
goes bad (especially if the former owner has not vacated
the premises), this is not a good idea.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My partner and I have been looking into getting a
foreclosure for some time now. Since we have little money
and since we are using other people's money, we were
wondering if we were to buy a foreclosure and re-instate the
loan under our names, could we then take out a Home Equity
Loan and use the money to fix up the house to sell? Is
there a better way to go about doing this?

Moderator:
This posting is not about taxes. Can someone tell the OP
which newsgroup is appropriate for his question?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >