Posted by Bill (OH) on April 25, 2000 at 20:34:27:
There’s a few details I don’t understand here. What are ‘law loans’? If the lender is asking for six months payments, either they know of a problem you don’t or they are misunderstanding something.
Also, are we dealing with a bank, or a mortgage broker?Is this an FHA deal or is it nonconforming?
One way I know the deal can work is for you to close on the property and then land contract the property back to your buyer with a balloon in, say, one year. Most lenders will lend 80% on residential—so, twenty percent of 90K is 18,000—so you should be able to borrow 72,000 with no down payment. Your buyer then makes the same payments to you that he would have made to a bank—until he can get his payments straightened out.
First thing though, is try to make the bank see that their request just isn’t in line with the situation. Just a few of my thoughts…