The actual winner has a choice between getting that home (which most likely they won’t take it because they wouldn’t be able to afford the income taxes on the home + property tax + other costs of upkeeping the home)
Arrange a loan at 50% LTV (easy enough to do, regardless of income) to cover taxes and other expenses till the home is sold.[/quote]
The problem is I believe the income taxes are due upfront…Just like any other type of raffle (like the Price is Right)..
Also there is a huge difference between what the actual home is sold and what the owner listed the home in the MLS…. That $4million+ home that MCD quoted is basically the asking price of what the seller wants, not necessarily what the home will actually get….
Also, you aren’t going to get a 50% LTV on a $3-4million home when you don’t have anywhere near the income to back it up when you apply for the loan…
For almost everyone, the lump sum payment makes greater sense.
