Real Estate Blog - Wow!!!! Did I Make the Right Choice?!?!

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Wow!!!! Did I Make the Right Choice?!?!

As many of you may have noticed I have not been around lately (please see my last post) and for a good reason. As I had written in my last post I would still be around but just not as much. I recently came across what I thought was a know brainer Hard Money Loan. Geez at least I thought so. Below are the specifics:

No Current Mortgage (Home is Paid for Free and Clear)

50% LTV (of Lenders appraised Value)

Owned the home for more than 10 years

Primary Residence

Sounds Good Right?

Well it seems it is official now in South Florida nothing is easy. I have been turned down from just about everyone of my private investors. The majority of the reason is they have stopped doing primary residence. The best one I have heard is that one of the Presidential Candidates is pledging to stop foreclosure on all primary residence. This would kill Private Money / Hard Money Lending if it is true. (please this is not a political post and for those who feel they need to comment about that will be deleted)

BEWARE

As always I work my hardest to place all of my clients loans and this one is know exception. It always amazes me how many bottom feeders ok lets just come out and write it SCUM BAGS we have in this world. When I make the phone calls looking for additional Private Investors I find other Mortgage people saying they are investors and just send them the application and they can place it.... WRONG!! The best one is the application fee when they can't even give you a straight answer if they can fund a primary residence or not.

All of this brings back to my title did I make the right choice or what about moving mortgages to a second job.

Posted by Matthew J Blum - MyFavoriteMortgage.net on 10/14/2008 07:02 AM

Comments (16)

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16 Comments on Wow!!!! Did I Make the Right Choice?!?!

OCT

2008

Matt... it's beyond tough out there.... again, there are only a handful of mortgage programs left out there period. On another note, what was the reason for going hard money on this deal? Was it because they don't have the income? Can't show it? Low fico score? In your scenario, those seem to be the only 2 that I can think of. thanks and hope all is well...

jeff belonger

Matt - Good to read you again amigo. Other than Hard Money Rehab Loans, I haven't done a plethora of Hard Money Deals in my career. That lending product seems to be a localized phenomenon since one of the major components to get the deal to the table is the collateral involved. Almost all my business is Conventional Lending these days and while they can be a wrestling match (barbed wire cage encounter at times) they are still being done regularly. As far as your decision, that's only for you to decide. Take care buddy, we will be in touch.

Jeff, That is why you are the expert.. Can't show it, Low FICO. Not an FHA loan.

Jason, Thank you. Only time will tell hopefully things will get back on track soon.

Matt... nice to see your smiling face! Things are truly different! Something has to change soon!

OCT

2008

Kim, I am with you things have got to change. Thank you

OCT

2008

Matt - good to hear from you again. Changes happen every day now as i am sure you are aware. And yes - Sardi and Belonger and myself are still posting away. Did we make the smart decision by staying the course or did you make the smart decision? Only time will tell.

Are prices in Palm Beach stabalizing yet or are they still in a free fall?

Stop in to AR more often and say hi. How is the commercial car / truck business treating you?

OCT

2008

Hey Matt,

Long time no see....good to see you...I guess you've been able to stick around....the market sucks for all of us.

OCT

2008

Matt, I never thought about the fact that a freeze on foreclosures would kill financing upfront. Wow!

This will all work it's self out. I just wish it would hurry. Lol

Every crisis creates opportunities for business...some legitimate, and some that take advantage of people. It is a sad situation. There perhaps will be just as many people that get "screwed" for the second time, on the way in and on the way out. All the more reason that a bottom up bailout approach would have been better.

Lewis, It is just such a wild market down here. Who knows when it will stop?

Neal, I hear that.. I guess all you really want to hear right now is they are a cash buyer?..:-)

Rod, What you are telling the lenders basically is that the loan you are asking for is unsecured..wild

NOV

2008

matt: I hear you. Every deal can present its challenges. Hang in there; it will get better sometime next year.

Paul, Thank you

DEC

I believe just today they changed the new home buyer and i know a bunch of deal sjust went down the drain...they are making it impossible for buyers to get loans...

DEC

Matt,

I do hard money loans, and have a stable of investors. In five years of doing these, I've only had one situation where an investor had to foreclose for nonpayment. He let the guy go for a year because it was a primary residence, and he always had a story.

Most of our private money loans are short term. If it's a primary residence, though, the shortest term allowed is five years. Most investors don't want to have their money out there for that long a period.

Mike in Tucson

JAN

Yes Mike I do realize this. However, most investors don't want to be forced by the goverment to make changes to a "high risk loan". Which is what they may be forced to do in the future.

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