Posted by zach on August 03, 2005 at 22:52:25:
It might be and it might not be. Depends on the credit score and what rates the owner is paying on the 1st and 2nd. Just because the credit score is under 500 does not mean you have to go hard money. May be able to get the owner into a short term loan, wipe out the liens, get the owner some cashout and most importantly get him back on his feet. You might even be able to drop his monthly payment with an interest only loan. Then in a couple yrs refi the owner again when the credit has recovered and get the owner a longer term low rate loan.
financing at 45% LTV property - Posted by Michael Curran
Posted by Michael Curran on August 03, 2005 at 15:17:58:
Homeowner at this time does not want to sell, wants to get a new loan on the property.
Property is in no shape for a refi and the seller needs a hard money loan.
Appraisal (attached) is for 540k, he owes 150K or so on the 1st Wamu (Wilshire now servicing)
To Citifinancial he owes 16K and has about 50,000 in Tax and IRS liens that will need to be paid.
Would it be worth for us to make him a 1st position loan for 250-260K, understanding that he will most likely not be able to pay the loan back and we may have to foreclose on him?
If prop is worth 550K at the time of foreclosure it would be a 250/550 LTV 45.5%