Bank loan woes

4 Replies

Just thought I'd share a frustrating situation I'm dealing with right now with a big box bank that starts with the letter B. I was supposed to close on my 5th property today which is a 3-unit property.

I learned yesterday that the bank is in the process of restructuring my loan because this particular property will have had multiple title transfers in the last 12 month. Basically, the house appraised at the appropriate level 56k for me to purchase, but now the bank is going to lower their loan amount based on a purchase price of 39k leaving me with a decision to walk or bring the difference to the table. As I understand it,The 39k price is so low because the investors that currently own the property bought a package of properties at a discount.

Which bank doesn't start with the letter B?

Thanks for sharing your situation, it educates others.

You need to find an investor and stop messing with "B" bank.

if I knew investors who would lend at 4.5% for 30 years then I would take your advice.......

I would buy the house cash myself, but feel I can get better returns with the money I do not use. Looks like I will likely be buying more up front than I originally wanted too.

@Matthew Cole

If there is equity in the deal don't let the deal slip away if you have to come in with more capital.  Go with your gut.

Frank

Frank Romine, Real Estate Agent in CA (#01957844)

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