After the HML

What are some options on a property that you are selling and cannot sell after your 6 month HML? Do you refinace with a conventional mortgage?
I understand the whole rental and lease purchase options. I’m just trying to figure out what to do if you are just trying to do a retail sale but you got the property via a HML.

First I would ask the HML for an extension on the 6 months. If they won’t give you an extension, then I would refinance the HML out of the deal.

Keep in mind that if you currently have the property listed (or had it listed recently) you may have trouble finding a lender that will refinance it for you.

What’s your credit score, payoff, value, and doc type.

Like Chris said, there is a limited # of lenders who refinance if the property has been listed recently. A well, getting a cash out loan may be equally challenging.

Thats one of the things I was wondering the whole refinance when you listed the property. Does that apply to only cash out refinance though? If I didnt want to take any money out would it be difficult?

The refinace would be grood credit over 720 no doc though the value I would say between 120-150k on a house purchased for about 80k with 20k in rehab done. these are just approximations of course. just trying to get an ideas.


I just thought about it you would refinance out of the HML before you put in on the market?

This happens a lot and I usually advise my clients to “take out” the hard money loan as soon as the repairs are finished and before it is listed on the market.

Do a rate and term refinance (no cash out) with no prepay penalty. This way you cut your holding costs in half and do not have to worry about a balloon note.