I have run into a snag trying to refi my personal home and it is delaying the close until after the Maturity deadline. The owner is threatening foreclosure if we do not close on time. I need a 60 day cushion but I do not want foreclosure. What can I do?
In Texas? Get a 2nd opinion from @Andrew Postell .
Lurkers: When you have a deadline coming up on a hard money loan, always start the process a few months earlier than you think you need to. Refinances have higher instances of getting jammed up than purchase mortgages, mostly due to self selection bias (a typical FTHB has spent a year making all their financials and credit pretty, when folks refinance they are their 'normal' selves).
@Heryn Donald thanks for posting. Can you provide any other information? Like what the snag is and why it's delaying closing? Sometimes this stuff is personal so feel free to Private Message me if it's easier to communicate there. Certainly willing to do anything to help. Thanks!
@Chris Mason thanks for the mention.
I have a similar situation except I am the seller, and my buyer, who bought my home in a wrap scenario over two years, has 6 conventional loans and is having trouble getting more. I want him to refi into his own loan, because I want my cash out of the deal. He has never missed a payment. Any solutions????
@Heryn Donald Obviously try to work it out with him...but unlikely he could get to a foreclosure sale within 60 days. Not sure what the timeline requirements for a demand, notice, etc are in TX.
Thank you, Wayne. You are correct. I have resolved it now.
Communication is always key. I owner financed a property about 7 years ago and there was a 5 year balloon. At 3 years I sent letter to buyer letting them know that they had 2 years left. At 4 years I let them know that they had 1 year. I also let them know that at 5 years and 1 day I would start foreclosure. I let them know I was there if they had any questions, needed help or anything else I could do to help them or the bank with the loan.
No communication on their part. At 6 months left, they started to look for a lender. We closed about a month before the deadline. I did all that I could to help. I was ready to foreclose if I needed to. 20 days to give notice of intent for foreclose and then post foreclosure for the next first Tuesday of the month(with at least 21 days notice). Usually happens in under 60 days.