If you were me and had to try to borrow money, what would you do?
When I bought in 2007 I had a lawyer go through and assess the reserve fund and history of the corporation. Healthy reserve fund, some past issues that had been resolved and enough to pay for a siding replacement within the next few years.
Buyer beware - even doing your homework before you buy sometimes doesn't help when the unexpected happens. Reserve fund depleted due to lawsuits, roofing nightmare, water issues not going through insurance. Siding project must go ahead, condo president and board votes on highest price, nicest looking siding for resale purposes - obviously money is not an issue for them.
My portion of the special assessment is around $20,000. I don't have it lying in a savings account to access so I need to try to borrow. Since the banks are tightening their belts, which option would best. My dad is on the mortgage with me, he is 1/3 owner of a duplex that is owned outright so he has equity in that if we need it.
#1) Should we try for a LOC, secured LOC or a loan?
#2) The mortgage is through Scotiabank, but we don't have our accounts there. In nearly 2 years our payments have basically just been paying down the interest and we don't have much equity because we bought when the market was high and now it is not. Should we even bother trying them?
#3) My dad has a history with BMO (he did have a mortgage, 3 loans which were paid off before due and 1 current loan in good standing) plus both he and I do all our banking at the same branch of BMO. Would it be better to try here?
#4) Our condo corporation is demanding payment in full. Should we try instead to do a promissory note because this would be easier on us and by law they have to accept that, our reserve fund is so low (1/6 of what my mortgage is) that all they could do is put a lien on our property until we pay it all back in full they couldn't take over the unit to buy from the bank. Someone else in our building is pursuing this option.
#5) Any other options? LOL.
Thanks for any advice.