Financing in Riverside>Question Details

gman, Home Owner in La Grange, TX

Need to borrow $25K - 30K to save home from foreclosure and pay bills. Can pay back in lump sum July 2014. Terrible credit, any ideas?

Asked by gman, La Grange, TX Mon Nov 18, 2013

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If you have equity in your home, then that's not a problem. A private investor would be willing to provide a first mortgage--really, a loan secured by the first--so long as there's sufficient equity. Maybe even a second, so long as there's enough equity.

Example: You own the house free and clear. It's worth $100,000. You need $25,000. Many private lenders would be glad to make that loan. The price of the loan might be in the range of 3-5 points and 12% interest. You pay it back by July 2014 and the debt disappears. You don't pay it back and the private lender forecloses and takes your home.

That would even work if you had a small mortgage on the property--enough equity to cover the first and the private lender's second. You might have a $20,000 first mortgage on the property and still a private lender would be willing to loan you the $25,000. The rate and points would be higher, but it could still work.

[Josh: I'm not sure if that's what Justin and Carlos were proposing, but that's how I'd do it.]

Hope that helps.
0 votes Thank Flag Link Tue Nov 26, 2013
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Justin and Carlos, can you post how you can help the OP? I am a mortgage banker here and come across this situation every now and then. Thanks

Josh Kohl
0 votes Thank Flag Link Mon Nov 18, 2013
I can help you out. You can call or email me so we can discuss the details.

Justin Poses
512.791.0932
JP@PremierTexasRealty.com
0 votes Thank Flag Link Mon Nov 18, 2013
Hello,

I can help you out if you'd like. Please feel free to contact me to discuss.
0 votes Thank Flag Link Mon Nov 18, 2013
Not really gman. With terrible credit most banks won't even look at loaning you money. Maybe a family member?
0 votes Thank Flag Link Mon Nov 18, 2013
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