Financing/Pull out equity-HELP PLEASE! - Posted by JR_IN
Posted by JR_IN on April 21, 2007 at 19:20:54:
Ok, I’ve mentioned this sub2 deal on here previously, but I need some help/advice. I’m trying to cash out the owners and pull out some equity (owe owners/lender $70k or less and I want to finance $87k total) with the lowest possible closing costs. This is the deal where the deed wasn’t recorded as it should’ve been and I didn’t find out until last month when the T/B was trying to get their loan…which fell through. Fast forward to now…I have been trying to figure out a way to access this equity because I have a personal situation that requires a cash infusion. The problem is that I have recently had some identity theft/fraudulent credit issues that basically hammered my FICO (found out about that last month, too). I have a willing credit partner, but with the sub-prime fiasco I’m sure the seasoning will be an issue. We have thought about going back to the original seller to sign a new purchase agreement, then having my partner buy it from them at our price (her FICO is good…700-ish, but her income is weak), but then we’re not sure how to pull out the equity. We have a lender who can close in 7 days, which is good, but if we do a 1st and then immediate 2nd wouldn’t there be seasoning issues still and also wouldn’t we get ‘double-dipped’ on closing costs? Since it’s not a lot of equity to begin with we don’t want 1/3 of it to get eaten up in the process. We also thought about doing the new PA, but then me assigning it to her and doing a simultaneous close (which I’ve never done), but the lender seems confused when we talk about it because I’m not on title and he doesn’t understand what’s going on exactly. I would just do HM, or private lender, but the HM fees would kill the equity and unfortunately I haven’t developed any private lender relationships. The T/B will probably get their financing within 90-120 days, so it’s also important not to have a prepayment penalty.
Does anyone have any suggestions? I would appreciate any help in this situation. Do you think the sim. close is the best idea? If so, how do I go about setting it up and what title company should I use? Feel free to ask any questions and thanks in advance for all of your help!