All Forum Posts by: Ryne Sweeney

@Brandon Croucier 

I talked to a couple of lenders that work in NY and neither were on board with that.

A lender is worried the borrower can claim they live in the property and they may get protection from foreclosure if they file bankruptcy. No lender wants to go thru that. NY is hard to do hard money in general.

This is too hard of a situation for the borrower has put himself in and at this point a mortgage is probably not the answer. 

I told him I couldn't help. Thanks for the info all. 

Hi all,

I am searching for a lender that will do a pretty hairy deal. The borrower is occupying the property and is in pre-foreclosure. She owes about $150k and the property is worth $500-600k. She is looking to get out of foreclosure (and if not a crazy idea) pull out some cash. 

I advised the borrower selling the property is the best option, but I know the infinite wisdom on BP may have other options I have not exhausted yet.

Anybody have a solution for the borrower to stay in their property? 

Thanks in advance. 

I have a friend that buys and sells quite a bit in SoCal. He knows some wholesalers that work out here. Seems like you may have some overlap. If it's not too crazy I can connect you two. 

Hi Jonathan. What are you looking to accomplish? We work in VA.

Velocity

Yeah, my company does. We're starting to see more HELOCs and 2nd mortgages on investment properties nowadays.

We deal with pretty much only real estate, investors and self-employed borrowers.

send me a direct message and I'll get you a little bit more information.

It could be 10:1, you could have an 800 FICO, and $5 mill liquid. No lender will lend that high leverage. 

The issue would be your wife documenting she is the sole beneficiary. But without a will or trust, I dont think a conventional lender could fund it until it goes thru probate.

If you can document your wife's ownership this can be treated as a DSCR cash out. You can close in an LLC with both of you in it. No seasoning is needed with our bank and you can get 75% of the appraised value.

Let us know how this one plays out.

HELOCs are an option. Homebridge has an option that closes in 5 days and charges you 2% of the loan in fees. Its by far the easiest and fastest to do. No appraisal and you sign initial docs and 5 days later you sign closing docs. The rates suck, though. double digits think 11-14% depending on FICO and LTV. But the payment is interest only for the draw period. So think of it as a short term fix to get into other properties that can generate cash flow.

Another thing is that the lender can call the loan due in 30 days. It happened around 2008, but no one is expecting them to do it now...

C/O refinances are an option unless you have a rate sub 5%. Then it doesnt make sense. 

Local credit unions are your best friend. The process will suck, but they are pretty much the only option that will get you single digit interest rate home equity lines. Well, them and SpringEQ, but SpringEQ will be 9% or higher most likely.