HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Ray

Posted by Phil Pelletier on April 25, 2006 at 01:17:15:

There are investors who will loan you enough money to do what you want as well as pay them back each month with their own money while your credit score improves. All you have to do is deed them your home (they are the titled owner with the loans still in your name), and then you will lease the home back from them with a recorded option to purchase the home with equity still remaining in the home.

Example:

You owe $65K right now. The home will appraise at $110K. Find an “equity partner” to buy your home for a cash payment of $10,000 directly to you. You turn over title of the home to them. You live in the home and make repairs necessary. You pay the “owner” $250 per month (out of the $10,000 they gave you) for 12 months. Then, after all the dust has settled (loans are all current, credit has improved, life is more stable), you apply for a loan to “refinance” the home you have “leased” from the “owner” the last 12 months. You pay off the first mortgage, the second mortgage, the $10,000 you owe the “investor”, plus the “fees” the investor will charge you on the back end of the deal ($2,000?). Sounds expensive, but remember, the investor came in with cash that you needed to not only repair your home, but cash to pay him each month to service the debt. He took the risk when you needed money. It’s expensive, but it works. If you want to talk more about it, send me an e-mail at phil@furrowpump.com and we can exchange phone numbers and discuss it in person.

Regards,

Phil Pelletier

HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Ray

Posted by Ray on April 21, 2006 at 04:59:11:

Hi,
My wife and I are really in a bind, due to 3 lay-offs (contractor) I fell into a financial situation. We were able to save our home from foreclosure, but now have a second mortgage. Is there a way we can get some cash from our equity? We would like to take care of some bills and make some repairs to our home. We have been turned down by a few financial institutions. Credit scores are low. We owe $58,000 on the 1st and $7,500 on 2nd. Home appraises for $110,000. Any ideas would be appreciated.

Thanks

Re: HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on April 21, 2006 at 08:34:59:

Cash out refi into one loan 80% LTV…if you credit will allow.

Re: HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by jason

Posted by jason on April 21, 2006 at 09:58:56:

Or do a stated HELOC, you can get one probably for 8-9%, depending on credit. They will put that 7500 into it, and liekl goto 90% (in OH they will, anyhow).

Re: HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on April 21, 2006 at 10:18:44:

If the home nearly went into foreclosure the odds that scores are high enough for a stated HELOC are slim to nill.

Re: HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Ray

Posted by Ray on April 21, 2006 at 13:39:18:

Thanks guys, it sounds as if I won’t be able to pull cash out of it.

I just wanted to try to do something. I thought there were loans, lines of credit that does not require your credit information.

Re: HOW DO I GET SOME OF THE EQUITY FROM HOME? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on April 21, 2006 at 13:52:37:

You can cash out refi with scores at and bellow 500, you just can’t get HELOCS with scores that low.