Finding 100% Financing for a client with tax liens and so-so FICO scores - Posted by Tyrone

Posted by Ed Garcia on November 28, 1999 at 12:31:18:


Who say’s we don’t. I never stated that it wasn’t a useful tool. I stated that it is not
a particular loan I would focus on for the benefit of this forum.

Rene you pulled out of my statement what you saw as an oversight which is not true.
I agree with you that all types of financing are valuable. As a matter of fact, Paul
has a FHA loan that is 100% LTV that I don’t have, so he tells me.

But since you brought it up, lets talk about it. I’m focusing on 90% LTV for purchasing,
NOO(non owner occupied), and 100% for selling OO( owner occupied)

I feel that those two loans for this forum are a must.

Although, don’t be so fast to jump on FHA loans. We both know that we can play with
a deal as far as working the numbers. But as a rule, a FHA 97% LTV loan requires the
3% down and at least another 4% in closing. That’s 7% down any way you look at it.

If you did that same loan through First Franklin, you could do it at 100% LTV with the
seller paying up to 6% of the closing cost. Now that truly is 100% financing.

I think we can both agree that there is more than one way to skin a cat.

No Rene, I don’t turn my back on any loan. Being in the business as long as I have, I’m
well aware of having every loan you can in your arsenal.

The subject matter was, stealing off of this site. Not what loan programs are more valuable.

Ed Garcia

Finding 100% Financing for a client with tax liens and so-so FICO scores - Posted by Tyrone

Posted by Tyrone on November 24, 1999 at 20:01:05:

I am a loan officer with a client who is seeking a no money down home loan (100% financing). She is a first time homebuyer, single parent, professional, with $75k annual income. She is currently renting a residence for $1300/mo and she has a median 560 FICO score. HUGE PROBLEM; she has $27k in IRS tax liens. I have her working with a tax expert to reduce/minimize the amount and to work out a settlement and/or repayment plan. The tax expert is also researching the possibility of the IRS subordinating, but in the meantime I am about to begin beating the bushes to find her financing. I believe this can be accomplished, but I would like to get any input on possible lenders and/or financing scenarios that any of you might know of that will enable me to obtain financing in spite of the tax liens and the FICO score! Any input would be appreciated and I will follow up on all responses. EMAIL: VOICEMAIL: 1(877) 674-1284, ANYTIME!

Re: Finding 100% Financing for a client with tax liens and so-so FICO scores - Posted by Ed Garcia

Posted by Ed Garcia on November 24, 1999 at 23:59:49:


Your going to have to restructure your deal. The best program out there
for 100% financing is First Franklin. They are in 16 states, and were previously
owned by Bank of America. Their median Fico for 100% financing is 640.

With the Fico you have given, 100% financing is out of the question.
Your going to have to restructure this deal with a seller carry back. I didn’t see
where you mentioned what State your in? As for the IRS, good luck. I have worked
many times with the IRS, but it doesn’t excite them when they don’t get PAID and
then the debtor goes out and buys a new house.

But that’s what you get paid for is to use your expertise to structure a deal to make
their deal finance able. The first thing you must learn is that the deal speaks for it-
self. If you are in California, then call me and I will show you how to do this deal.

Tonight I’m going to share a little secret. I have been working on financing for this
Website and with J.P’s and Terry’s knowledge to do 100% financing Nation wide, for
Owner Occupied, and 90% for Non Owner Occupied. I will have something for
everybody. In a world today that is Fico or credit score driven, I will be able to do
deals with a minimum score of 520. The Company that I will be associated with is on
the New York stock exchange with a Net worth of $150,000,000 and $50,000,000
liquid. They are licensed to do business in 47 States.

It’s not done yet, but I know I can get it done. I would have already had it done if I
would have agreed to everything they wanted. I could not do that, but now they are
coming around to my way of thinking, I know we can meet half way if need be.

This could be very exciting for this site if I can pull it off. It will make a lot of unhappy
Brokers who have been stealing deals off of this site, but you can’t make everybody happy.

For the first time we will be able to have continuity in financing on this site. To me,
consistency is important. I’m tired of hearing about hit and miss brokering. I’m tired of
hearing about brokers who don’t follow up or mislead the borrower.

I’m afraid that good wine and being in a good mood, has given me a loose tongue.

Go work your deal Tyrone, and if you would like to have a second opinion, you can
call me at (909) 944-0199 and after asking some questions, I will tell you what you have to do.

Ed Garcia

Re: Finding 100% Financing for a client with tax liens and so-so FICO scores - Posted by Mark-NC

Posted by Mark-NC on November 29, 1999 at 14:39:52:

That sounds like some great programs. Do you know if they will allow flips?

Stealing? - Posted by Paul Macdonald

Posted by Paul Macdonald on November 27, 1999 at 10:34:04:

Hi Ed,

Congratulations on being almost up and running. But isn’t “It will make a lot of unhappy Brokers who have been stealing deals off of this site” a little bit harsh? Stealing? Competing/bidding/marketing yes. Stealing no.

Being one of those competing/bidding/marketing types of brokers who shall be unhappy I’d like to ask that you lessen the charge.

Your friend,

Paul Macdonald

OOOH! Goody!! - Posted by Bert G

Posted by Bert G on November 26, 1999 at 12:11:59:

I’ll be watching for a big blinking banner when you get it all set up. Could you give a hint at the 3 states that aren’t covered?

Bert G in ND

Please tell me that… - Posted by steph in tex

Posted by steph in tex on November 25, 1999 at 08:10:44:

Please tell me that Texas is one of those 47 states…??? I’m holding my breath!
thanks for the insite and also the Thanksgiving post above.
Have a great holiday Ed.

Re: Stealing? - Posted by Ed Garcia

Posted by Ed Garcia on November 27, 1999 at 15:17:51:


I would have NEVER of singled you out. And to be quite honest with you, I would
not have considered you as one of those brokers, due to the fact you have tried to
go through proper channels to get approved to advertise on this site.

Now Paul I know that you are aware of the fact that Creonline have been aware
of my activities. As a matter of fact I know that when you called Terry Vaughan
he told you that I was going to be the designated lender for the site and to call me.

You did, and I went over your programs with you. When I finished, I was convinced
that you had nothing to offer that I couldn’t already do. You have a killer FHA program
which would be of no use to this site as a whole, due to the majority of the investors
here will be Non Owner Occupied. FHA loans are designed for Owner Occupied.
Keeping that in mind, I told you that if I ever had a deal that I could not do and you
could, I would send it to you as a back up.

I thought enough of you, that I personally sent you a deal that was in your area, because
I felt you would accommodate the borrower, and I wasn’t set up yet.

The truth of the matter is that the Vaughans only want a hand picked selected group of
various lenders to accommodate their viewers. They have chosen who they want.

J.P. does not want this site to be prey for brokers to come and solicit business. However
She does realize that she needs to have financing that would help the participants
who are having trouble procuring financing.

This is the Vaughans site, not yours, not mine. They have a right to choose who they want
to do business with.
Anybody who is doing business off of their site with out their authorization, is stealing.

The Vaughans, have time and time again removed solicitations from this site. So I think
that speaks for it’s self that they don’t want unauthorized soliciting.

Yes Paul, a broker who is getting business from a source with out their permission and
against their policy is stealing.

Ed Garcia

Re: OOOH! Goody!! - Posted by Ed Garcia

Posted by Ed Garcia on November 26, 1999 at 13:27:04:


Alabama and Louisiana , will most likely never be approved. Louisiana because they
are under french law, and I don’t know why most National lenders don’t want
Alabama, but I’m sure it has to do with their laws as well.

New York is being approved as we speak, so most likely we will be in 48 States.

Ed Garcia

Re: Beg to differ - Posted by Rene Perrin

Posted by Rene Perrin on November 28, 1999 at 11:07:34:


Just as an aside- the FHA program is a very valuable tool for investors. Remembering that when we buy for resale, we are looking to maximize profit (cash) from every sale to our end-buyers. FHA offers 97% financing for what is essentially an A- borrower with no FICO requirements.

Many mortgage brokers and investors alike are scared of FHA for perceived “red tape.” A knowledgeable mortgage broker would be wise to have that tool in their tool chest.

Rene Perrin