Does anyone know of source(s) for second mortgages on foreclosures? Many of the foreclosure cases I deal with want to borrow say $5-$40,000 to pay-off their arrears. I would like to refer them to someone who can do a second in short order for them. This would likely be private money oriented source and apply to cases with favorable LTV of course.
Thanks,
Chris,
When you say, “they” want to borrow, are you referring to the current owners of the house in pre-forclosure?
Yes.
Well my only thought on the matter would be why would a lender think it a good idea to lend someone money in a 2nd position when the first is looking to foreclose soon. I can’t say I know exactly how the order of things go in regards to 1sts and 2nds, but I wouldn’t think someone would care to do that even with a high rate of interest.
I know if you are trying to ‘help’ the owners and can’t take the property sub2 from them then you can help them with some sort of forebearance proceedings to relieve them of their mortagage payment for up to a year. That for SURE will help if they are just in a slump and will soon recover. This makes you the good guy and they will refer your other more profitable real estate services to others they know.
Don’t think like “a lender” – think like an investor who wants “an in” if and when the seller decides to sell.
Many of these folks want to stay in their homes, but in most cases they will likely sell in a year or two if they don’t default again and sell earlier.
Chris
Sorry I know my text mentioned lender like bank, but I meant it even as investors. I as an REI, if I had the cash needing to put somewhere would not be with a 2nd mortgage on a home that is owing payments and close to foreclosure to the 1st person in line. Unless I was going to take ownership of the property sub2.
Maybe I missing an investment angle that would make a 2nd mortgage on this type of situation advantageous. I might be missing something…
I agree with ARamirez. i wouldn’t put money into a 2nd on a property close to foreclosure unless I was getting control of the property. Then, I would also be bringing the 1st d\current and selling soon.
I would have to agree!!! It’s not a good investment for an investor. However as long as the ltv is there some investors will not only pay off the 1st as long as the ltv is there they would give cash back at closing to offset the abusive rate. This is only a BANDAID, but desperate times call for desperate measures. As long as they keep on time for 1 year and stop apply for credit cards there scores will go up and B,C lenders will take care of them.
I think your homeowners have much better chances of refinancing with a foreclosure bailout programs rather than getting the second.
Wesley