Posted by JohnBoy on October 30, 2000 at 24:28:23:
If your credit is good I don’t see where this should be a problem getting refinanced.
Worst case senerio, instead of losing $10k, why not take a $10k hit by leaving that much invested into the property instead?
If you can’t get a 90% LTV as a non-owner occ, then go for a lower LTV and use some of the CD money to buy down the loan to get a lower LTV.
If you borrowed $90k for a new first, that would put you at a 74% LTV. That would take care of the $75k first and the $15k second. Use the $20k you have in CD’s to buy down the difference. Then sell with owner financing on contract for deed getting $10k down. You get half your CD money back and create a nice spread on the payments every month with a nice payday on the back end when your buyer refinances in a couple of years. Since you’re selling on terms you could sell for around $130k - $135k with $10k down, no qualifying at 11% - 12% interest.
Or instead of using the whole $20k in CD’s, use $10k of it to borrow $100k which will put you at 82% LTV. Then get the $10k back from your buyer and your even with getting your cash back and keep a nice monthly spread each month with a decent payday when your buyer refi’s in a couple of years.
I wouldn’t just bite the bullet on this one and take a $10k loss when you don’t have to!