Have a loan not sure what to call it.
Have a loan not sure what to call it. Here is the story. My borrower was talked into giving someone a private second mortgage. That someone was foreclosed on by the first lien holder Frank Manny. My borrower has the right of first refusal and is trying to get a loan to pay off Chase. He needs a no income verif. His scores: beacon 616, tu 591, xpn 591. The property is a duplex and came in at 105,000. He needs 70k to pay off the first mortg. including closing costs. He has 12 months bank statemnts for his business at 70% averages out apprx $4,500 month income. ratios under 40%. Submitted to First Franklin said they’d give him 65% LTV. Now they said they can not do it because the borrower needs seasoning? The borrower owns the property because he was a lien holder and is no taking it over. He was holding the lien since March of 99. Technically did he purchase it? refi or what. Is this guy stuck in some kind of loan void? Any one out there know what he can do?
Your guys scores will be his program due to the type of loan your are seeking (investor refi/stated income) HOWEVER the deal is doable. There are lenders that will do this but you will need to arm yourself first:
1. Get a copy of whatever documents that shows when he purchased the house himself. If he was flipping it, things will be more challenging because he was likely never on title then.
2. Get a copy of the deed showing he held a 2nd mortgage (this will show his ownership) and a copy of the note he held.
3. YOU contact Chase and ask if they will assigned the borrowers interest in the note they hold for 90 days, he will need to make the payments to them to during this time. REMEMBER… Chase DOES NOT want to own the property and it will cost them $$$$ to sell it.