Loan committee says NO! - Posted by Gary

Posted by Sailor on April 27, 2006 at 19:43:24:

Tony, do you mean it is possible the seller of my mhp was fibbing when she told me the total annual operating expense was $100 (for a load of gravel for the drive)?

Tye (who has writer’s cramp from writing checks)

Loan committee says NO! - Posted by Gary

Posted by Gary on April 26, 2006 at 20:01:45:

Have a contract on a MHP, 43 lots, 1 vacant, 21 park owned homes, 21 owner occupies. Owner repoed this park from a contract buyer about 1 1/2 yr ago and has spent a lot of time and money getting it back in shape. Problem is, the owners records are very poor. Show no history and possibly only part of the income. Bank denying the loan because of income history of the property. Showing good income now with some room to improve yet. No problem on my side. Four big loans with this bank, debt to asset ratio, good. 780 fico score, wife continues to beat me at 813. Bank suggests a two year land contract with seller so I can show income. Seller has told me there are other buyers willing to buy out purchase contract so my offer to seller of a land contract may not work. Any suggestions?

Re: Loan committee says NO! - Posted by Gary

Posted by Gary on April 26, 2006 at 22:39:39:

Tye and Tony,thanks to both of you. I’ll get on this tommorrow. Maybe seller can advise me of a bank where he is a customer, that understands his system of record keeping. He may also know a wealthy individual looking for solid income on a note. Seller just keeps saying he just wants to be rid of the park so they can travel. And Tye, the boat’s in the water.

Re: Loan committee says NO! - Posted by Sailor

Posted by Sailor on April 26, 2006 at 22:04:47:

I would do a face-to-face w/the bank powers that be & find out what it would take to make this work. It is always harder to say “no” (again) when someone is in front of you. Maybe you can sweeten the pot or get more bank info on the seller that supports his income claims. The “other buyers” may not be able to perform, so it is possible you could get a land contract or master lease. Good luck, & looking forward to your update!


Re: Loan committee says NO! - Posted by Tony Colella

Posted by Tony Colella on April 26, 2006 at 21:53:54:

One “no” down, more to come but a “yes” is in there somewhere, you just have to keep asking other banks.

Its not fun, especially when you have a good relationship with one bank but quite often we have to go outside that bank to others. Somehow it always seems to turn out better in the long run for us. We get good contacts at a new bank and the original banks seems to find comfort in the fact that some other lender has agreed that what you do is a wise investment for them.

Refinances are easier and that is essentially what your bank is telling you. If you can find the cash another way, another lender you will likely find your bank much more flexible.


Re: Loan committee says NO! - Posted by Tony Colella

Posted by Tony Colella on April 27, 2006 at 08:52:02:

If your wealthy friend cares to invest in this deal then you may well be able to cash him out through a refi in 12-24 months. I would still encourage you to borrow on long terms just in case rates change etc. that cause you a delay.

The seller may be motivated but that may not necessarily mean they are giving you a deal. It sounds like the seller is hiding the details deliberately and this should send up red flags. But honestly, I assume all sellers are lying and document my own numbers for expenses and income. This way there are few bad suprises (there are always suprises with every system, I just find mine approach hurts me less).

With these documented figures you can both negotiate better with the seller and the bank.


Re: Loan committee says NO! - Posted by Gary

Posted by Gary on April 28, 2006 at 11:32:19:

Thanks again Tony,I made some headway on deal yesterday but will keep details mum till done deal. A solution I used years ago called “assigned savings” may be the answer to this delema. I know,how is it spelled.