Posted on: 20th Aug, 2009 12:55 pm
i own a manufactured on land outright, valued at $140k and need a home equity loan of about $30,000. nobody seems to want to make one of these loans since i have no mortgage now.
i'm also self employed so no income verification, but the lenders i've talked to haven't even got to the employment part yet. any particular lenders i should be looking at?
i'm also self employed so no income verification, but the lenders i've talked to haven't even got to the employment part yet. any particular lenders i should be looking at?
i don't imagine there will be one institutional lender in this country willing to look at that scenario. hard-money lenders, maybe, would nibble - but that's a likely stretch too.
you've got a confluence of negative factors: no income verification/manufactured home/home equity loan. loans for these situations are rare birds in 2009.
you've got a confluence of negative factors: no income verification/manufactured home/home equity loan. loans for these situations are rare birds in 2009.
What I don't understand is, if I default on the loan, they get the home/property valued at $140k (by todays standards) for $30k. That's a win win situation. They could sell the place next day for $60k even in this bad market and make out like bandits.
If I was an investor this is the type of investment I would dream of. I guess that might be the trouble....maybe I should ask to borrow $200k against a $140k home.....
If I was an investor this is the type of investment I would dream of. I guess that might be the trouble....maybe I should ask to borrow $200k against a $140k home.....
au contraire...any loan on which there is a default will not be a win-win situation. not for anyone.
by the same token, if it's such a wonderful situation, then it ought to be a piece of cake to pay back the hard-money lender's higher rate, right?
sorry, i can't agree with you as to the especial type of deal you have. lenders are not going to take risks on unusual situations, and that's pretty much the bottom line on that.
by the same token, if it's such a wonderful situation, then it ought to be a piece of cake to pay back the hard-money lender's higher rate, right?
sorry, i can't agree with you as to the especial type of deal you have. lenders are not going to take risks on unusual situations, and that's pretty much the bottom line on that.
"Hard money lenders" as in who? I would gladly pay a higher interest rate. I don't need the 5%-6%. How is this an unusual situation, I own the property and home. If I default on a $30k loan, they get a $140k worth of property. They won't even talk mortgage on the property since I paid cash for it and own it. I don't see how a lender couldn't win, I'm borrowing appox 22% of the value.
I now understand why lending institutions are in financial distress and pawn shops are doing, and have been doing a booming business. Lend or buy at 30% of value and you can't go wrong.
I now understand why lending institutions are in financial distress and pawn shops are doing, and have been doing a booming business. Lend or buy at 30% of value and you can't go wrong.
A hard money lender is either a private person or a small company that lends money to people who essentially have nowhere else to turn. Many of them charge as much as 5 points and the interest rate can be as much as 10-12%
