They have a 14% and trouble refinancing for a reason. THEIR EQUITY POSITION AND CREDIT DON’T JIVE. There are enough brokers/lenders out there that can get it done if poss.
If you are going to lend money via a mortgage, I would suggest that it have 30-35% or more in equity. Need a cushion for foreclosure. We don’t lend out anything with less than 50% equity, but we wait around for the cream puff deals.
If you want to invest in mortgages, one suggestion is finding a hard money lender that is looking for investors to buy the mortgages from them.
I know someone who has a 72K loan at 14%. They want to refinance but have poor credit. They are having trouble refinancing for whatever reasons.
I am thinking of a way I could get the note/house and refi the loan myself at say 7% and somehow make some cash (since I have excellent credit). I would then somehow sell them back the note and the whole time they never leave the house and they still are able to get a lower interest rate. (of course this must be ethical and legal)
Sorry if I am rambling or a little unclear but I am trying to make some money and provide an alternate solution to a problem somebody has. A little brain lock right now.
Any advice/guidance is greatly appreciated.
Thanks,