Updated over 7 years ago on . Most recent reply
Seller Financing/Note Question
I'm currently speaking to a property owner who is in foreclosure for the 2nd time in the same 2 properties as the first time. Long story short is that he is not willing to sell either property as he wants to keep both. He has one commercial property that has a 1st and a 2nd note totaling 73% loan to value and on his primary residence, he has one note totaling 50% LTV where his interest rates on all loans are 12% from a private money lender. He is only willing to refi out and will not consider selling.
Couple things to note: He went through a divorce where his credit was ruined and he had to refi his properties in order to pay for the messy divorce and custody battle which is why his interest rates are so high.
Basically, he is wanting to find a lender/investor who is willing to buy out his debt and become his new lender at a lower interest rate of about 6-8%. My thoughts are that he has about $500K debt on $750K value properties and no one will touch those for that interest rate and/or without big fees that he will need to pay up front to bring the debt down so the lender is more secured. Is there anyone who would touch this? My thoughts are no.
He can pay to reinstate the loan again like he did last time but wants to get out from the 12% interest rate but can't because his credit is shot from the divorce. Any thoughts or advise here?