To Anyone Creating Paper - Posted by Tension

Posted by David Alexander on April 20, 1999 at 12:22:37:

At 55% LTV if you were talking to hard money lenders and they wanted to know about your income and credit, then you weren’t talking to Hard Money Lenders, keep looking. You could also run an ad to borrow money at 55% LTV, rate and terms negotiable. I don’t know the ramifications of the ad verses securities laws.

David Alexander

To Anyone Creating Paper - Posted by Tension

Posted by Tension on April 20, 1999 at 11:21:46:

A couple of weeks ago, I posted for advice about my situation. I have a HUD home under contract until 5/10. Had financing but was contingent on husband’s and my joint credit. He has left and won’t sign. I do not have a problem with my state laws in this regard. I was referred by the good people here to a hard money lender but was told yesterday that I would have to have perfect credit or a huge income. I have neither. This property is 55% LTV. My reason for this post is that it was also recommended that I create my own mortgage. After talking to several lawyers, I have been unable to find one that was comfortable with this before I close on the house. My dilemna is that I know it can be done but I don’t understand how you pay off HUD with a note. I’m sure it’s a simple process, but I don’t believe HUD allows simultaneous closings. If anyone can offer me any suggestions for the NY area, it would be greatly appreciated. Once again, I’ll state the obvious…I can afford to lose the husband, but not the house!!! Thanks you all for helping me thus far. Marsha

Re: To Anyone Creating Paper - Posted by Brandi_TX

Posted by Brandi_TX on April 20, 1999 at 19:36:43:

I agree with David. It doesn’t sound like you were talking to a true Hard $$ lender. When calling Mtg Brokers, you need to specify that you are looking for a lender that will loan strictly on the value of the house - not on credit or income. I live in a smaller town and most of the brokers here told me the loans didn’t exist. I ended up talking to some brokers in the nearest large city, and they were able to help. Keep calling till you find someone that knows what you are talking about.

Good Luck,

Re: To Anyone Creating Paper - Posted by phil fernandez

Posted by phil fernandez on April 20, 1999 at 16:25:21:

Hi Marsha,

The way you create the note and get the money for the note to pay off HUD at closing is as follows.

1./ Find an investor who would buy your created note for cash. Find out from him his buying criteria such as yield, seasoning, loan to value, balloons that he requires.

2./ Create the note to the note buyers criteria.

3./ Sell the note you created to the note buyer at the closing table with HUD. You give the note in exchange for the note buyers cash. In turn you give the cash to HUD for their house.

This is all done simultanously.