Jim IL, Phil Fernandez, JPiper, HELP with a deal - Posted by JohnBoy
Posted by JohnBoy on November 17, 2000 at 10:34:08:
A lot of times the bank will want verification that you have the funds to close or the financing already lined up before they will commit to any pay off amounts. So I would start locating a lender that would do this type of a loan now and get pre-approved based on your credit for up to 80% LTV on a $105k dollar amount. That way if one of the lenders want proof of funds you can get a pre-approval letter from your lender.
Another alternative to try if you can’t get the first to agree on a workable amount or the second to take less is to try and work a deal with the first getting them to finance you. Usually once a loan goes bad the lender just wants it off their books and doesn’t want to be bothered with it again. But their are times they may be willing to work something out depending on the circumstances. You just never know until ask!
If you can’t get the numbers worked out using the first approach, then try this one and see if they would do anything or not.
You ask them, Mr. Banker, if I could show you a way that would SAVE YOUR BANK from LOSING any more money on this deal by having to pay out attorney fees, court costs, waiting to get the property back which you know could take up to a year or longer, ESPECIALLY, when the borrower drags this out until the end and then files BK to drag the process out even longer sticking your bank with additional holding costs, because your note is not performing and then having to either, spend MORE money to fix up the property just to TRY and recover your losses or take a steep discount to get it sold and pay a realtor commission on top of it, would you be interested in avoiding all this and put this note to rest by financing a new qualified buyer? If your bank would consider refinancing this with a new first and adding about $12k to it so we can satisfy the second lien holder on this I can give you a qualified buyer that would buy the property TODAY, and give your bank a new performing loan NOW and put this old non-performing loan to rest! Would that be something your bank would be willing to look at Mr. Banker???
Unless you ask, you’ll never know what they will say. The only problem with this approach if they would consider this will be that they will more than likely want to add all their fees and arrearages to the new loan in addition to the $12k to satisfy the second making your new first at much higher LTV. So I would work hard on the first approach and try to get them to discount something just to take care of this problem now and get the loan off their books.
I don’t know of any lenders that are doing non-season refi’s for non-owner occ off hand. They are harder to come by right now, but you might try giving Ed Garcia a call and see if he knows any one doing these. If his license covers the state you’re in he may even be able to handle the financing for you on this deal.
I know Associates used to do these in some states, but I heard they have changed things a lot and in some states they aren’t even writing new loans, but you can check with one of their branches in your state to see what they say. I’ve used them to do a deal just like this one over a year ago, so you might look into it for your area and see what they tell you.