HELP! I am in pe-foreclosure! I got a person approved for a hard money loan, we purchased a property, and, prior to maturity, we found out that we were not able to refinance due to my guarantor's debt to income ratio. Now, we fixed that part, but the loan has matured so no lender we have tried will touch it because we do not have current payments. The reason we don't have current payments is because the hml will not accept any payments unless it's the full payment. So, what am I supposed to do now??? Just take the kick in the *** and let them foreclose on the property??? There has GOT to be a way out of this, somebody PLEASE tell me how!!
Can you get an other HML and refinance or sell...?
If you cannot refinance and cannot sell quickly enough see if the HML will do a deed-in-lieu of foreclosure. Its much cheaper than going through a foreclosure and much quicker.
Can you scrape up enough cash else where and bring the hand money loan current? Credit cards, personal loan, friends and family, 401k loan, sell something?
What is the property worth?
How much is due on the HML to pay it off?
Did you do all the repairs?
@Brett Goldsmith , thinking about trying for another hml, and trying crowdfunding websites too.
@Jon Holdman, that means quit claiming the deed to lender and basically giving them the property to have and control right? will probably make that a last resort.
@Chris Seveney worth $110k as is, did repairs, owe $71k
Why not sell it ?
Also when you say you got a person approved for a HML - was that Person a business partner in the deal ? I assume they were not the end buyer.
@Chris Seveney I just listed it last week, but the original plan was to buy and hold for appreciation, so we would really prefer to refinance instead. He is kind of a business partner, I am basically his consultant because he doesn't really know anything about real estate investing but he is trying to build wealth from playing the game
Given your numbers I'd try to find a different HML to quickly do the refi, if you're determined to keep it. Meaning if the ONLY thing keeping you and your partner from a conventional refi is the back payments on the HML, then refi quick with an HML and then do the conventional refi.
But, how are conventional lenders even finding out about the back payments on the current HML? HMLs usually don't report that sort of stuff to credit bureaus. Has the lender already started the foreclosure process?
If your timeline is short and you cannot find an HML to refi, give it a firesale price, choose a buyer who is offering cash and a quick close and sell. That will put more cash into your pocket than foreclosure or deed in lieu.
@Jon Holdman they find out about the status of payments when they ask for the mortgage statement. A few months ago when I was applying to a lender, I was able to get a "payoff statement" that doesn't show the status of the loan but the hml made it very hard to obtain and it has now expired so I am very hesitant to ask for another one.
A re Agent told me that he does not see any indication of foreclosure proceedings when he looked the property up.
I'm waiting now to see if a current potential lender will contact the hml for me and they will give him the payoff doc that they sent last time
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