Refi after a quickly can it happen? - Posted by Drew_MD

Posted by Drew_MD on April 21, 2000 at 12:17:52:


Thanks for your reply. Maybe my post wasn’t clear. First, this is a preforeclosure…the lender is doing something about it, they just notified her that they are starting foreclosure. Second, I’m not interested in buying, if I were then I wouldn’t be trying to get her refinanced.

Also, in my opinion, she is motivated. She wants to avoid foreclosure even if it means she has to move out. I think she’d give me a deal if there was one, but as you stated there isn’t.

I certainly won’t be doing anything with this house at this point, but I don’t think it is asking too much of me to refer her to my mortgage broker to see if she can refi. What do I have to lose?


Refi after a BK…how quickly can it happen? - Posted by Drew_MD

Posted by Drew_MD on April 21, 2000 at 08:45:49:

I’ve got a Seller in preforeclosure that declared BK in Oct '98. The house is worth about 105K, first lien of 89K, with an additional 14K in arrears (hence the foreclosure). She has no problem making the payments which have been current since the BK, but she just can’t catch up on the 14K.

She doesn’t want to keep the house, but I’m not willing to fork over 14K for no additional equity. My thinking is to get her refi’d and then maybe L/O from her or she can try to sell to someone else. At least this would avoid the foreclosure.

OK, here are my questions:

  1. With a BK in Oct '98, would she be able to refi NOW?

  2. Are there any other techniques I could use to help her avoid foreclosure and make me a few bucks in the process?

Thanks for your help!


Re: Refi after a BK…how quickly can it happen? - Posted by JohnBoy

Posted by JohnBoy on April 21, 2000 at 12:58:01:

Verify the exact amount with the lender to bring the loan current. You can set the deal up to where you would just take title “subject to” and subject to you placing a suitable tenant/buyer into the property.

Once you have everything verified and the paper work in place you can run an ad in the paper offering a L/O or seller financing. You can get above retail because your offering terms. You just need to find a buyer with at least $15k to put down.

Run an ad like this:

No Qualifying!
Owner will finance!
$15k - $20k Moves You In NOW!
Call xxx-xxxx

If you find a buyer with enough to put down, use their money to bring the loan current. You sell on a wrap at a higher interest rate and selling price and collect the spread every month. Or L/O and collect on the spread each month.

You might even find a buyer that you can get financing for with enough down and just sell the property out right and collect the spread and be out of the deal.

If you can’t secure a buyer then you just walk away from the deal! It will cost you a little time filling out the paper work and the cost of running an ad to find a buyer. You just need to determine if it’s worth the time and expense of running an ad to take a crack at it! :slight_smile:

Also, if you did find a buyer that you can get financing for, you can also try and get the lender to take a discount on the mortgage by agreeing to a short sale. This would put more cash in your pocket at closing!

As far as getting this lady refinanced now, it is highly unlikely! She has no equity and no lender is going to refinance her at 100% LTV when she’s in foreclosure, behind $14k in payments and recently filed BK. It just ain’t gonna happen!

Re: Refi after a BK…how quickly can it happen? - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on April 21, 2000 at 10:46:54:

I would just quietly slip away from this one, and here is why. She has NO EQUITY to work with. She is NOT motivated, and why should she be?
she is just behind in payments by 14K and the lender is not taking any action, the reason for that is (see above). So now you are thinking about paying full retail just for the good feeling of helping someone out of a mess that you had nothing to do with creating.
You ask what the chances of her refinancing are? I am not in that business, but my guess would be about 0% (plus or minus a couple of points)…ED