Paying Private Lender

[Steve Karpinski]

Just wanted other investors and lenders opinion on this. I have a private loan for a flip i am doing. The closing is supposed to be this Tuesday March 31. I already  got the mortgage commitment letter and everything was basically done and waiting to close. The buyer's lenders came back Friday and asked for proof of employment to still move forward on the settlement. The husband is still working but the wife is currently unemployed. She runs a daycare and will go back to work whenever the kids can go back. I am sure I am still going to have to pay my private lender but I just feel like this is totally out of my control I had the house sold and is a rare situation. I feel like I should just owe up until March 31. I pay monthly payments so my best solution might be to just ask him if he will allow me to defer the remaining interest since I can't really buy or sell houses right now. I signed the COV-19 addendum with the couple so we will still close it's just a matter of when. I offered to rent the house to them since all there stuff was ready to be moved Tuesday.

[Derek Dombeck]

What he is saying, is your deal with your lender was made when you borrowed the money to flip the house. The fact that your buyers can't perform has nothing to do with your agreement with your lender. If you agreed to pay points, fees, and interest on your loan, that's business. I run a lending company. We try to work with our clients through their challenges because the last thing we want to do is foreclose. BUT, at the end of the day, we have a business to run and families to feed too. Call your lender and have a conversation. I suggest you not use the words " I feel" in that conversation.