I have a potential client who purchased a home in August 2005. They just received a Notice of Default which commences the foreclosure proceeding. I can probably keep the loan at 65-70% ltv; but can't go full docs. I need to go stated with a hard money lender.

My issue is in the past when I did hard money loans, the homeowner had at least a 24 month mortgage payment history. This borrower only has had the property for 9 months and is already in default. Are there hard money lenders who will touch this loan?

Please share your experience with this type of scenario. thank you in advance.

Try Brantley & Associates (713) 981-5926.

My top 2 favorites for this...

www.qualityhomeloans.com
www.rsmortgageinc.com

Thank you AZ Lender and Promised Land for those possible referrals. I will investigate on Monday 5/8.

whats the LTV? how many 120's?

give me details on the lates, and full scenario.. I'll price it out for you...

Papa lou,

As mentioned there are gobs of hard money lenders all over LA and CA that will do this deal if the LTV is truly what you say it is.

The curious thing is what's going on here that these folks are in FC 9 months after buying the house and has whatever the thing that caused them to get into this situation been remedied? A hard money loan is going to be at double digit rates so if they couldn't make payments at a lower rate are they going to be able to make them at the higher? Can they really afford this house? Is a hard money loan really going to help these people or just delay the inevitable?

I would want good, sensible answers to these questions before trying to put them in a hard money loan.

IMHO conducting business like this is what separates a LO who is really trying to help people vs. someone just trying to make a buck anyway they can.

Excellent post,

I agree with the previous post....the why's are so important in this case.

They may be better off selling the property, and downsizing into something more affordable, or possibly an apartment.

Larry

Subprime lenders don't usually do loans for borrowers who have more than 2*90 lates or NODs on their current mortgages within the past 12 mos, but I have seen exceptions made. But going stated on this loan with NOD on borrower's credit is in my opinion impossible.
I strongly agree with SDmortgagepro's comments. As a loan officer you have a duty to make sure that the borrower is truly benefiting from the transaction.
If the borrower's family had a medical emergency and they are under a short term financial slump, and in need of cash to cover expenses, that is one thing.
But if the borrower just doesn't have enough income to cover the mortgage payments, the refi is going to hurt them even more. The amount of monthly payments and the amount of debt is surely going to go up.