Over $50K In Equity, But Can't Find A Lender...

Financing, Hard Money Lenders, Private Money
1

Hello.

I’m confused, and frustrated.

Since August, I’ve been trying to help my Mother refinance a note she has on a house that she’s renting out.

The good: the house (single-family, 3 bedrm., brick) was appraised this past October at $60,000 by a professional appraiser (we’re in Tennessee). The first, and only, mortgage on it has a balance of $7,714.95, but it is currently 30 days past due. A young couple is paying my Mom $350.00 a month in rent.

The bad: my Mom’s credit was damaged badly by incorrect information. I was able to get it straightened out, but I’m told it will take 60 days before the 3 agencies reflect the correction. So, as it stands her credit scores are around 490. Ouch! Plus, she’s retired and on Social Security.

The ugly: she only wants to pull a little cash out (about $12,000), and EVERY person I talk to says that they can’t help us.

Why?

Isn’t there enough equity?

Is there truly nothing we can do until her scores go back up?

Thanks for reading. – Thomas

2

The truth is that $12k is just too low of an amount for most Banks to even take on…the minimum loan amount is usually about 35k-50k. Best of luck to you and Mom…

3

Sorry to hear about your situation. Have you tried American General Finance, Wells Fargo or Fair Finance?

4
Have you tried American General Finance, Wells Fargo or Fair Finance?

MDHAAS, good point! I never even think of those type of lenders. They lend more on your personal belongings I believe. I know that the rate is high, but, it may work in a pinch.

5

have you tried a home equity line of credit?

6

wil817, her credit score knocks her out of about any type of conforming financing.

7

You can easily get a HELOC or a loan through the commercial dept of a local bank given the equity. Of course if I had any $60k dollar housed rented for $350 I’d be trying to sell.

8

Hi everybody,
think you guys missed this point.

The first, and only, mortgage on it has a balance of $7,714.95, but it is currently 30 days past due. A young couple is paying my Mom $350.00 a month in rent.
The mortgage balance is around 8K, I should think lenders would love to get a new refinance on this house. If I'm wrong, NetQwest can corrrect me. steve
9

There are several issues here.

The mortgage balance is around 8K, I should think lenders would love to get a new refinance on this house

The first problem is that lender’s do not like small loan amounts (under 50K)

she only wants to pull a little cash out (about $12,000),

12k cash out+8k current mortgage= 19k

So, as it stands her credit scores are around 490

The second problem is her credit score. Even if she wanted to go higher and take more money out…her credit score will disqualify her + she has a mortgage late.