Posted by Nate(DC) on January 24, 2002 at 20:03:14:
In general a hard money lender would not go up to 80% LTV ($107 + $26 / $165 = 80.6%). Most will only go to 60-65% LTV which would leave him needing a large amount of cash to close. Additionally, hard money will typically be at a very high interest rate. Could your friend afford the payments on $133K mortgage at, say, 18%? If not, he could lose the home as well. I don’t think you’re proceeding down the right path.
As to what IS the right path…why did the mortgage company only give him 5 days to payoff the second? That doesn’t seem normal. (Did they tell him six weeks ago and he’s just now trying to solve it? If so, tough luck to him!) With a BK only about a year old he will have trouble getting anyone to finance him except the subprime folks and they might not go up to 80% LTV either. For what it’s worth, if you will email me off the board I can recommend a broker that might be able to get him something - but certainly not within 5 business days.