Posted by John Corey on September 08, 2006 at 09:30:46:
Josh,
Most HML will not offer a 2nd. The few that seem to offer such deals have been in CA where the numbers are large so I think they are offering seconds to reduce the loan size.
Your alternative if you can not get a 2nd it to take out a new 1st. More costly in a few ways.
Note that even if you found a HML that would do a second, the amount you want to borrower is rather small. Some HML will only fund loans over $50K or over $100K.
Here’s my situation. I have a subject to deal, on a property with 2 liens. One mortgage for 77k, and an IRS lien for 33k. The property is worth about 280k. I want to take a loan to pay off the IRS lien and free up some cash. Basically I want to take a loan for 40k. Are there any HML’s that would take a second position? We’re looking at 163k gross equity based on these loan amounts. 58% LTV.
Re: Are Hard Money Second Mtgs unheard of? - Posted by Ed Garcia
Posted by Ed Garcia on September 08, 2006 at 10:58:02:
Josh,
John brought up some valid points, although even in Ca. most HML?s would try to get you to refi the first. You don?t tell us what state you or the subject properties in, but it makes no difference; there are some institutional lenders that should accommodate you.
These lenders do not require pristine credit and deal in sub prime credit. They are finance comanies that can do different typs of loans, and would have no problem in giving you a second on your property. Beneficial Finance, HFC (House Hold Finance), American General, City Finance, Just to name a few. If you continue to have a problem call me at (909) 944-0199 and I?ll see if I can help you.