Can't Seem to Cashout After MLS Marketing - Posted by Chris

Posted by Shambhu Nath on July 15, 2005 at 17:17:58:

You have two problems. One is seasoning and the other one MLS Listing history.

The lender take lower of the purchase price or appraised value for the first six months unless theyhave not seasoning requirements and you can document the improvements made.

The MLS listing becomes problem as it tells lender that the property is not marketable and so they do not want to finance a property that does not have buyers.
You may try to get a line of credit if ledner accepts appraised value and then pay it off later. thanks

Can’t Seem to Cashout After MLS Marketing - Posted by Chris

Posted by Chris on July 15, 2005 at 15:17:01:

Hello All:

My business plan is based on rehabbing the property and marketing the home for 90 days on the MLS. If the property doesn?t sell then refinance the property to hold as a rental. My situation on this particular deal is this.

Property Appraisal - $120K
Hard Money Loan - $67,500
Credit Card Debt for Repairs $23,000

I have great credit but have to go stated income since I am self employed. I can?t seem to find any lender who will do a cashout refinance on this deal for one reason only it has been marketed on the MLS within the last six months. At this point I don?t know what to do since I really need to refinance it to pay off both the Hardmoney and CC debt. I have a renter ready to go. Any advice??

Thanks,

Chris NC

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Shane

Posted by Shane on July 20, 2005 at 14:31:58:

The simple answer is have your realtor write a letter that says that you asked them to put iot on the market as a rental property & they misunderstood and put the property in MLS as a property for sale not for rent. OOppps!

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Kristine-CA

Posted by Kristine-CA on July 19, 2005 at 15:47:15:

I had a deal with similar numbers a few months ago and I just walked
into my local bank and said I wanted a HELOC that included a pay off
of the hard money loan first mtg. I have average credit and I am self-
employed and went stated income. Had only owned the property 1
month. I got 85% of appraised value–No prepayment penalty, no
additional closing costs and an OK rate (5.75%).

I’d never had a regular home loan before–always hard money or seller
carrybacks. The process was easy as pie.

Like I said I’m average credit, went stated income and this was a local
bank. Maybe worth a try. Kristine

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Walt

Posted by Walt on July 18, 2005 at 18:13:07:

What a negative bunch here. Don’t let them discourage you. There are many lenders out there that will do your cash out with out any seasoning of title. Most also don’t care about the MLS listing. They will require a 3 year prepayment penalty to protect them against you putting it right back on the market, but that should be all they will require.

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Marty(FL)

Posted by Marty(FL) on July 17, 2005 at 13:13:08:

Lower the asking price for quicker sale. True this cuts into your profits, but right now you need to get your money out of there and keep it moving into the next deal. You’ve probably put a lot of sweat equity into this place, and can’t bear to walk away from it for less than $20k profit, but at this rate your $20K profit is going to dissapear anyway. Take less on the sale, make $5-$10k on it, and then get into the next deal. Just my 2 cents.

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Devon Daughety

Posted by Devon Daughety on July 15, 2005 at 23:15:41:

Is it still listed on the MLS?? If it is, you definitely couldn’t do a cash out refinance. When did you take it off the MLS?? What state are you in?

Re: Can’t Seem to Cashout After MLS Marketing - Posted by Don Dion

Posted by Don Dion on July 15, 2005 at 21:31:41:

I have done several posts on this subject over the past 9 months or so. Freddie Mac and Fannie Mae have tightened in the mean time. FHA put the breaks on these over a year ago. Right now you might have to own the units for 12 to 14 months before you will get a lender to bite on an appraised value. About the best you can expect from a rehab deal now is disclosing all of your receipts for work done to get your investment out with out any cash back for your sweat equity or increase in value.

Re: Can’t Seem to Cashout After MLS Marketing - Posted by clint

Posted by clint on July 15, 2005 at 15:26:48:

LTV looks like 75%, which shouldn’t be a problem. You need a lender who will allow cash-out refi with no seasoning I believe. You have owned it less than 6 months?