A Loan Now

We reviewed his situation, he needed a Stated Income loan, his credit scores were 444, 469, 491, he did have equity for us to issue him a $100,000 Stop Foreclosure Loan, his loan to value would be 66%, he had about 14 collections and charge-offs on his credit, and he felt there was no hope, because he had been declined by 3 other mortgage companies prior to contacting us.

We solved his problem by issuing him a $100,000 2nd mortgage with a payment of $1000 per month, this loan was a 20 year loan, with only a 6 month prepayment penalty. Needless to say, he was very happy

The problem was he didn't want to sell his house, he wanted to keep it. Fortunately his cousin was a past client of ours. She referred him to us. After we talked, we immediately reviewed his credit and realized as expected his credit was bad with low scores in the 400's. We rushed for an appraisal, then sent a notary out to his house with loan documents.

The loan funded before the Foreclosure Sale date, and Joe was elated. Although Joe only needed $30,000 to take care of his mortgage problems, we gave him an extra $10,000 so he could clean up his credit. Now he can improve his credit within the next 6-9 months. He is following our advice and re-establishing his credit so we can lower his payment even more with a refinance, once his credit scores improve.

He was amazed at how many wolves there were who were trying to scare him into selling his house at a fire sale price. Fortunately he heard that we could help him and we did.

After reviewing his situation, we realized we could help him, even though his credit scores were 416, 523, 470, and he had 11 collections/charge-offs, his income was reasonable as a school teacher, so we decided to go full income documentation.

This loan was simple, he faxed us some basic items, we talked over the phone to gather additional information. I emailed him the loan disclosure forms. He faxed them back within a day, we ordered the appraisal, I received it within 3 days, loan documents were prepared. I had a notary meet him at his house for loan document signing. The loan funded before the Foreclosure Sale, Luis was ecstatic. Another satisfied customer.

Because of the lack of rental income from the property, and because she was still required to make payments to the mortgage company, she was forced into foreclosure.

Mary was a wonderful person, she just had bad luck. Her job was on the blink, her credit was bad because she received her paychecks sporadically, she didn't have any money to save this property from going into foreclosure and the property was severely damaged and looked horrible causing it to be virtually un-saleable.

Fortunately the property had equity and could be fixed at a reasonable cost. She had a handyman friend who owed her money and who agreed to fix the house providing she pay for all the materials, he agreed to do all the labor.

The house required two long bed trailers to haul all the previous tenants trash and mess out. The back roof needed to be replaced. The walls needed to be patched from baseball bat holes [from past tenants]. The house needed to be completely painted inside and out. The floor needed to be completely resurfaced with carpet and tiles. The patio needed a new roof, windows, floor, electrical wiring, lights, and indoor walling. All the appliances had been stolen. The yard needed to have the three foot long grass cut down and had to be re-landscaped and decorated. The garage looked like an airplane crash landed into it.

So you might say "was it worth it trying to help her?" YES, because this lady Mary needed money desperately to prevent her own residence from going into foreclosure, and this house with it's equity was her only solution to her problems.

To make matters worse, she requested my help only 10 days before the house was going to foreclosure sale.

YES, we helped her.

• First, we issued a second trust deed for to bring all back payments current, in addition to allowing her sufficient money to purchase all the materials needed to repair the house.
• Secondly, we held aside money from the loan in an escrow account to pay for the mortgage payments, insurance, and taxes until the house was sold.
• Thirdly, we made arrangements to have the house sold.
• Lastly, we found a buyer who we qualified to buy the house. The house was repaired sufficiently to allow for its sale. In fact the buyer was happy to get such a nicely finished house.

Mary received her a significant amount of cash from the sale and saved her residence from foreclosure. After escrow closed on the rental property, her job conditions stabilized also. Everything worked out exactly the way it had to, even under the stringent time constraints.