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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Need to consider the strictures of anti-predatory loan rules... Posted by Irwin(CA) on March 21, 2004 at 2:25 PM In Reply to: Need to consider the strictures of anti-predatory loan rules... posted by Ward-CA- on March 21, 2004 at 2:15 PM : : whyK, : : Have you considered loaning the homeowner sufficient cash to reinstate the defaulted loan? That way you can foreclose if payments to you or the other loans aren't made. : : The loan would be made through a real estate broker and include a shared appreciation (or shared equity) provision and have a 3-5 year due date. : : It seems to me that this has all the benefits of your plan but avoids having to "partner" with the homeowner. : : Just thinking out loud. : : Irwin : =============== : Irwin, : Such a loan might not be possible if it violates CA’s anti-predatory loan laws, especially in getting over the “capacity to repay” requirements. Ward, Wouldn't keeping the interest rate and fees below those specified in the predatory lending law, maybe even no payments, be sufficient? Since this type of deal would only be made if there is sufficient (lots of) equity in the property, wouldn't the "ability to repay" be moot? Irwin Follow Ups: Re: Need to consider the strictures of anti-predatory loan rules... jenv 2:17 AM, 03/23/04 (2) Re: Need to consider the strictures of anti-predatory loan rules... whyK 7:56 PM, 03/30/04 (1) Re: Need to consider the strictures of anti-predatory loan rules... jenv 11:52 PM, 03/30/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : whyK, : : : Have you considered loaning the homeowner sufficient cash to reinstate the defaulted loan? That way you can foreclose if payments to you or the other loans aren't made. : : : The loan would be made through a real estate broker and include a shared appreciation (or shared equity) provision and have a 3-5 year due date. : : : It seems to me that this has all the benefits of your plan but avoids having to "partner" with the homeowner. : : : Just thinking out loud. : : : Irwin : : =============== : : Irwin, : : Such a loan might not be possible if it violates CA’s anti-predatory loan laws, especially in getting over the “capacity to repay” requirements. : Ward, : Wouldn't keeping the interest rate and fees below those specified in the predatory lending law, maybe even no payments, be sufficient? Since this type of deal would only be made if there is sufficient (lots of) equity in the property, wouldn't the "ability to repay" be moot? : Irwin Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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