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…
“There are no problems, just challenges.” I have a duplex under contract to purchase for $77k, 100 earnest money, Seller(out of state owner) carry back 20k w/a 3yr. ballon, no interest, no payment. Property appraises at $90k. Lender has a contract w/a purchase price of $90k, which has been approved. Buyer has agreed to pay all closing cost, plus (5%)dn pymnt totals $7,500. The loan is 95%LTV, credit score 610, w/EQUICA BANK full doc.at 11%int. Sweet deal, $25k @ closing.
HERE’S THE CHALLENGE
Buyer has law loans that are now due. In the Loan pkg. the explaination is that the Husband is making payments. Payments just started last month. EQUICA BANK is asking for 6mo. docs. of payments.(GO FIGURE!!)
Contract was to close in Feb. Seller is still under contract but the tention is tight, everyone once a fast closing. Buyer must close or there’s a strong possibility we’ll lose our Seller.
Is there a way to satisfy EQUICA BANK’S needs?
Any other Lenders that can be used to close QUICKLY?
This must work! It’s costing me my trip to St. Louis. Now, Let me put your heads together to see what you can come up with. Let’s do this, gang!