All Forum Posts by: Paul Cordero

This would be considered a "Flip" transaction with most lenders and is thought to have increased risk.

Some banks have certain restrictions for these transactions for the new loan. For instance, if the new purchase is within 90 days of the last closing (the one you paid cash for), they won't lend more than 80% LTV. This may be more than the buyer you have can afford.

This doesn't mean that it can't be done, but there might be tighter guidelines per bank. Connect with me if you want to talk more.

To give you some perspective, you aren't going to get much better on the rate for an investment property, maybe 4.125% with no points. You could pay discount points (2 will get you into the high 3s, but does it make sense for your goals on the property)

Also, 25% down is pretty standard for an investment property.

Connect with me if you would like to get a 2nd look without pulling credit.

You also must consider the amount of work it takes to do a refiannce these days and if the banker/loan officer is willing to do such small loan amounts.

Doing 4+ deals under $100K for this scenario could be a nightmare for both you and your banker. I would focus on 1 to 2 at a time, pull the cash out, then sell them.

FYI - Seterus is a Special Servicing company. They may have not had the origination platform to conduct HARP Refi's, they just service existing loans(default servicing too, so they probably do HAMP & SS for the investor).

This was the case when I worked for Green Tree. All HARPs were referred to Quicken Loans through an agreement with the investor.

Aimloan is capped at 125% LTV. True HARP 2.0 should be offered by the investor (FNMA/FHLMC) through the existing servicer. Contact your existing servicer to see who they go through for HARP.

My bank will only do HARP 2.0 for loans that we already service, but I have seen some crazy deals get done like 65% DTI, and 200% LTV.

NA NA - if you are late on your payment 30+ days, the investor should be throwing a HAMP mod at you.

I'm also a big fan of when I refinance someone and they can continue making the same payment as before to pay their note off sooner.

yes

Agreed, but my whole point which got this started is I don't see FNMA giving the buyer a discount on the property and then lending on it. Sure they will lend on it to turn the bad debt to good debt, but plan on paying full price.

The old "bad loan" went away at the FCL Sale. The investor is simply trying to mitigate further loss now. True, the asset is still on their books as an REO, and good reason to give a new loan to a qualified buyer, but I don't think they are going to take more of a loss by giving that new buyer a discount.