Is This Guy Mortgageable??? - Posted by Bob G.

Posted by Bud Branstetter on November 03, 1998 at 22:02:19:

I have not run across that situation but in todays market my two cents says that he can. But that is what mortgage brokers are for. Refer him to one and find out if he can prequalify.

Is This Guy Mortgageable??? - Posted by Bob G.

Posted by Bob G. on November 03, 1998 at 21:03:28:

I have a prospective buyer for two properties which I own. One a HUD SF, the other a 2F income property. The guy is ambitious. He is income qualified. His fiance has a decent govt job. This guy is on his 3rd job in a year. Each job he has left, he has left to better himself economically. Right now he is a heavy equipment operator. (Assume for the purposes of discussion that his former employers will give him excellent references.) He pays all his bills on time, but he has no credit (not bad credit, just no credit). He’s 35 years old.

Here is what he told me tonight:

  1. He is an ex-con (sale of controlled substance).
  2. He is on parole.
  3. He has a $9K child support nut he is paying off at the rate of $50.00 per week. He is not in default on this item and has made all payments on time.

Assuming the real estate will appraise out okay, what are the chances of this guy getting non-owner financing? It seems to me that lenders would be charry of lending to a guy who could violate his parole and end up back in the slammer.

Your thoughts, folks?


Re: Is This Guy Mortgageable??? - Posted by Ed Garcia

Posted by Ed Garcia on November 04, 1998 at 01:06:16:

I?m sorry to say that there is so much information left out.
You don?t mention how much the buyer has to put down?
You don?t mention how motivated you are in carrying paper?
You don?t mention the LTV that we?re working with?
As a matter of fact you don?t mention any information in regards to the
structuring of this deal.

This buyer can purchase these properties if the deals are structured
properly. Many times when doing deals, we structure the deal to
accommodate the buyer and their circumstances. As long as it does the
same for us. I think it?s just a matter of how badly you want to sell the
property to this buyer.

If your market place is hot, then of course you can wait for another buyer.
If not then I suggest you capitalize on this buyer.

If you like you can call me at my office tomorrow morning at 9:30 a.m.
California time, and with a few questions answered, I will help you
structure your deals. My number is (909)944-0199.

Ed Garcia

Re: Is This Guy Mortgageable??? - Posted by Mr Donald (NORVA)

Posted by Mr Donald (NORVA) on November 03, 1998 at 22:46:16:


Take control of the situation. Work with a mortgage broker in your area who wants to fund your deals. B-C credit should be no problem for this guy, as long as you’re not holding the mortgage.

While you may not wish to hold a mortgage for this guy, there are lenders who will, albeit at a higher rate of interest. So make the most of it, and get him qualified to buy your property. Jointly, based on your comments, they should both have enough verifiable income to make them more than just a prospect.

Good luck!