I have an 18 month lot loan that was due in April I paid $2450 to extend it thru October. Now what do I do?
I purchased this 1 acre lot in a up and coming Prestige Gated Community in El Centro, CA called Magnolia Gate for $275,000.00 after my down I owe roughly around $250,000. I've been paying my payments which are interest only on time every month along with Association Due's. The problem I ran into was that when I purchased it was the peek of the market now I can't get comp's to build my home without putting a helacious amount of more money down. The property has now sat there while my 18 month lot loan has come closer and closer. The tiime came and I extended the loan for 6 months and paid the fee. I was advised by National City Mortgage they would no longer extend my loan after this. What do I do? National City told me to get with my Broker who got me the loan but she also has told me she can't help because banks aren't doing lot loans anymore, this includes National City Mortgage my current lender. What are my options I have good credit score 640 up to now and don't want to ruin it.
HI Sergio, sorry to hear of your troubles.
** I'm located in Imperial County, CA **
The gated subdivision of Magnolia Gate will be a highly desirable place but you have to be ready to ride the storm during this market correction.
It sounds as if they offered you an "extension" on committing to your construction loan (lot loan that converts to a construction loan), however have you asked them to modify the terms of your loan to lower the balance and /or rate so you can keep it?
I agree with the other answers with regard to selling the lot to get out from under the contract of having to build, especially if you do not have the funds required to put down with the change (removal) of construction loans in todays market.
More than likely others would be interested in buying your lot would be in a similar boat, however there could be buyers who can fund the construction with their own resources if they pick up the lot inexpensively.
You may have to sell your lot short of what you owe to National City or if you cannot pay anymore, they will end up foreclosing on the property and have to sell it themselves to recover what is owed.
Let me know if I can be of any assistance.
Sergio-
I read your type of scenario all of the time. Let me tell you that there are NO banks refinancing land, especially i Californina. Your choices are to simply either sell the lot or try and find a construction loan and build something on that loan. Now a 640 credit score is not that great for construction loans right now but it is very possible that your local bank is the best option. They may consider doing a construction loan for you. Other than that, you have to try and sell your lot. I'm sorry for the bind you are in.
Hi Sergio,
I also recommend selling it. But the bank may change their mind if you show you have hardship. Keep trying and at the same time try to sell it.
Homa
Broker Associate
Prudential California Realty
Yes, they said they would only modify the terms for 6 months from the original 18 month loan, they said after that their would be no more extensions or modifications which is now up in October.
Did you ask them if they were willing to modify the loan terms?
Put the lot up for sale and sell it if you can. You may have to walk away from this one. The lot may not be worth what you paid for it.
Carol Pease, ABR, CRB, CRS, e-PRO, GRI
Didn’t find what you were looking for? Ask a question!
Ask a question
|
|
|
|
|||||||||||
|
|
|
Fair Housing and Equal Opportunity