Advice for DSCR delinquency please !!

[Beverly Gutman]

Hi everyone!

I'm looking for advice for a really tough situation I got myself into. 

I have a 3-family investment property with a DSCR loan. I got stretched thin on funds during the refinance stage of another project, used funds from this triplex for that project and missed 3 months of payments on the triplex mortgage. I didn't realize that my loan documents had a default-rate clause that jumped the rate to 23% once I was late! By the time I realized, I didn't have close to enough funds to cure the default (the payment is now around $12,000/month at the default rate).

I hired an attorney to try to get the lender to reinstate my original rate (7.875%, which is workable) since the property fully covers the mortgage with room for reserves. But the process dragged for months. The bank kept requesting the same documents again and again, the intererst was climbing and I stayed in limbo. In June, I was told there are no loss mitigation options available. Around the same time, my loan was transferred to a new servicer.

Is there someone - an attorney, loan workout specialist, or DSCR-specific consultant - who has dealt with this kind of situation and could give me any advice or help me get this loan back on track?

[Chris Seveney]

You can try and work something out with the new servicer as the loan may have also been sold. My recommendation is to submit a proposal to the new servicer on what you can do / afford, but it will be challenging to get them to waive default interest etc