Posted by DanM(OR) on May 19, 1999 at 13:45:24:
P.S.
Her main motivation for a refinance is to get her husband off of the deed and loan. She has given
herself a deadline of 60 days. This is an emotional deadline not one set by anything.
Dan
An a-typical John Behle Rescue! - Posted by DanM(OR)
Posted by DanM(OR) on May 19, 1999 at 10:48:42:
John and Friends,
My I buy houses ad brought this lady in. I know she has several options other than the hard money guy she is thinking of working with. I thought I would bounce it off the experts to get some ideas. This situation is a little different than I am used to.
Here’s the deal:
2 houses, one main home and a possible rental. The rental is vacant and the lady occupies the main house with her family.
The main house is a 5 bed / 2 bath with
-3 car garage
-barn
-2800 square feet
-Tool Shed
-Storage shed
-on 40 acres of land
-land is zoned EFU80 (not familiar with this zoning) I know that it is an agricultural zoning.
-she has beef on the farm (value unknown)
The story: Typical nasty divorce. He’s a total jerk blah, blah , blah. You fill in the blanks. There is a first on the house of $149,800. Payments are a total of $1,445/month which are affordable for her and her family. It appraised 2 years ago for $225,000. Comps now are about $255,000.
Her husband has a ghost lien of some type set up with attorney. Has agreed to Quit claims to property for $21,500, which the home-owner has already put into escrow to pay him off. She borrowed the money from her parents.
She wants to stay in the home, forever, if possible. She has two collections pending that she is protesting. One that was an $85 bill that went to collections and is now $700. Another for a cellular phone bill her ex took off with. She believes that her credit is VERY bad because of the collections. I imagine that it is not as bad as she thinks.
All she wants to do is a simple re-finance if possible to get a new first for about $171,500 so she can pay off her parents and the first. She says she is current on the first.
I know this is a slam dunk for the Karps and John Behle’s out there, but I am not sure where I fit in here and where to go next. I would really like to help this lady before she accepts a proposal from a hard money guy who is setting her up for financial rape.
Ideas:
-
A B, C, or D lender of some kind and work a standard refinance. Not sure where I fit in.
-
Creat a note and sell at closeing to a national buyer. I broker the note. (have never done a simultaneous note sale before)
-
A sale lease back which are usually tricky and I don’t want to be stuck in the middle for a long time.
-
Others?
Thanks for your input!
Dan Matejsek
541-419-4880
P.S. Property is in Oregon
With what we know - Posted by John Behle
Posted by John Behle on May 20, 1999 at 24:19:51:
From what I read, it looks to me like she could probably go conventional real easy. Paper solves problems, but a B/C lender may be the best and cheapest choice here. To make it work for you, negotiate a couple points with the lender. In most states there is no provision stopping them from paying you a commission - though they don’t like to sometimes.
It may cost a few bucks to pay off the collections, but point out to here that it may save thousands in interest and fees. Find a good lender in your area and have them take a 1003 loan application - or download it from the FNMA site and do it youself. Pull credit and gather income info. You will want to build some good long term relationships with lenders to help you in cases like this. It is one of the most valuable tools a paper investor can have.