first lien position

I hope I am on the right forum… I am in Wa. State. Know a homeowner who owns his house F/C through an inheritence. This homeowner is facing a property tax forclosure sale and needs some $$$ for deferred maintence. Obvious reasons why he can not get a conv. loan…ie; credit, income etc… Value of prop. is $200K… He wants 35K back taxes, maintence and other stuff. I offered him this at 13% componded monthly (no payments to me on the loan) and a 3 yr ballon, with a first lien position and clear title. My attorney has advised against this saying Wa. State has a consumer loan usuery limit of 12%… Just 12% over the life of the loan…??.. So anyway if this is correct, I would put up my 35K and only get back a little over 4k in interest, 3yrs down the road…I think I am missing something. I have heard of hard money lenders getting 15-18%… adding loan fee’s and even discounting the amount paid to the loan amount. Can anyone lead in the correct direction with this one. He wants to do a deal this week. and so do I, but not at a straight 12% interest.

You can have a licensed real estate broker write up the loan on your behalf for the terms you want, have the borrower pay him a small fee. This way the usury statute will not apply.