Accepted offer, need help!! - Posted by Chad in WI

Posted by Irwin on March 06, 1999 at 05:36:56:

The non-conforming mortgage industry is undergoing quite a shake out now. Many of the leading lenders have folded in the last 6 months (the lastest-United Companies Lending filed Chapt. 11 last week) and others have tightened up their loan requirements.
I also hear that some of the ones that folded are coming back under different names. I guess as long as Wall Street has billions to invest in mortgage paper, the loans will be there.
If you have been dealing with a local bank, I’m not surprised they did this. Banks love to make you one loan, maybe two and sometimes three, but beyond that, then tend to get nervous, especially if the deals are highly leveraged. The answer is to try other small (town) banks in the area.

Accepted offer, need help!! - Posted by Chad in WI

Posted by Chad in WI on March 05, 1999 at 23:11:13:

Recently I finally got an accepted offer on a duplex. The sellers, with some convincing, agreed to hold a second mortgage with a five year baloon.

All was fine until I talked to a lender about the other 80%. I have dealt with this lender before, and he even sounded positive about the deal. He called last night to tell me that his underwriters felt there wasnt enough of a cash flow(which there is, I own 3 other duplex’s also), and they could only finance it over 15 years. At this point, I am starting to get bummed about doing any more investments, because I am feeling that if my own bank is having problems with this, will any other’s even consider it?

I have an appointment with a mortgage broker next week, and am trying to keep positive about this, but I am feeling that if one lender rejected me, they may also. I also know there seems to be a higher lending charge with these types of brokers.

Any other ideas to help me out???

Chad in WI

Re: Accepted offer, need help!! - Posted by Joe S

Posted by Joe S on March 09, 1999 at 14:44:52:

Do you have 20% down?
I can help you…& we dont look at income/debt ratios. email me if you have interest still

Re: Accepted offer, need help!! - Posted by mike

Posted by mike on March 06, 1999 at 19:50:07:

is there enough room to do something creative, like a double closing or something, give a bunch of short term paper on your other assets, get title, refinance? what is wrong with 15 year terms, not enuf cash flow? ow did you expect to pay the balloon? find out what he is going to do with the money, and solve his problem for him somehow, something creative…

Re: Accepted offer, need help!! - Posted by Rob

Posted by Rob on March 06, 1999 at 09:16:23:

I used to work for a mortgage Co. They are only middle people. They basically broker loans. They should be able to help you. If they know what they are doing.

There are 100 type of loan Programs out there for everybody. Hard money to little to no down.

I hope this help and good luck with your broker.


Re: Accepted offer, need help!! - Posted by LezlieTN

Posted by LezlieTN on March 06, 1999 at 07:47:26:

Get in touch with your local real estate club. I am sure one of the investors there can turn you on to a lender who deals with investors that feels more comfortable with our deals. I wouldn’t worry about the interest rates… Your tenant pays them, not you. Hope this helps.