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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Non-performing second / Predatory Lending Posted by garyr on March 26, 2004 at 4:32 PM In Reply to: Re: Non-performing second / Predatory Lending posted by Pahomes on March 25, 2004 at 10:41 AM : You're absolutely on the right track with your responses as to what I'm thinking. : We would like to get instantly cashed out at this point. However, the HO : has some property that may be worth about 15K. : They already filed BK7 last year. Was considering trying to sell, but : is now wanting to refinance/loan mod. : We're going to investigate the latter two items and hopefully try to achieve : some type of resolution with HO. : I'm not saying we're doing the loan mod. I just want to be clear that : this may or may not impact me in my decision. : : Thanks Rick ! Hmmm... in this market he may be able to refi both loans and get a new 1st at 121k and cash you out for your $50k - even with 1 year out of BK. If you have the capital I'd consider refinancing him yourself. Structure something with a lower monthly payment than the sum of the two he has now. Put in a balloon payment (maybe the $70k of the current 1st) that's due before the date when he could declare BK again. Either you are going to get paid properly on the loan proceeds or he will default and you have the house for $80k + forclosure costs. If he keeps his nose clean and spends the next couple years improving his FICO he will be able to refinance your balloon into a more attractive mortgage that you could give him, so it doesn't seem "predatory" - check the statute of course If you don't have $70k of capital sitting around you may be able to partner with someone that does. The deal looks potentially good enough to bring in a partner. Is there somethng wrong with my thinking here? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : You're absolutely on the right track with your responses as to what I'm thinking. : : We would like to get instantly cashed out at this point. However, the HO : : has some property that may be worth about 15K. : : They already filed BK7 last year. Was considering trying to sell, but : : is now wanting to refinance/loan mod. : : We're going to investigate the latter two items and hopefully try to achieve : : some type of resolution with HO. : : I'm not saying we're doing the loan mod. I just want to be clear that : : this may or may not impact me in my decision. : : : : Thanks Rick ! : Hmmm... in this market he may be able to refi both loans and get a new : 1st at 121k and cash you out for your $50k - : even with 1 year out of BK. : If you have the capital I'd consider refinancing him yourself. : Structure something with a lower monthly payment than the sum : of the two he has now. Put in a balloon payment (maybe the : $70k of the current 1st) that's due before the : date when he could declare BK again. Either you are : going to get paid properly on the loan proceeds or he will : default and you have the house for $80k + forclosure costs. : If he keeps his nose clean and spends the next couple years : improving his FICO he will be able to refinance your balloon : into a more attractive mortgage that you could give him, so : it doesn't seem "predatory" - check the statute of course : If you don't have $70k of capital sitting around you may be able : to partner with someone that does. The deal looks potentially : good enough to bring in a partner. : Is there somethng wrong with my thinking here? 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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