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Sub-prime Lives...Sub-prime Breathes...Sub-prime Closes?

By
Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

 It's true, it's true, it's darn true!  In my 7 illustrious years in the Mortgage Business, 65% of my business has been Conforming Loans.  You know, the Gold Card Elite who have the type of credit that warrants dinner and drinks at the White House.  As crazy as the Market as been, Conforming Loans have remained the same.  Yet, I've heard the echoes of a dried up Sub-prime Market....even rumors of it being totally dead.

Well, to sum it up in 2 words.....Not Quite.

We happen to be closing one today.

Check this out:

616 Credit Score

Large Judgement on Credit (which had to be paid off of course)

$100,000 cash-out

80% Loan To Value

The last 24 months of the borrower's mortgage history is scattered with 30 and 60 day lates.

CLOSED IN 3 DAYS!!!

And oh, one more small thing to consider.....it's a Stated Income Loan!  The borrower happens to be Self-Employed.

The rate isn't too bad either.....8.5%!

The land of second chance financing hasn't disappeared yet.

We await the closing package....

Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
18.5%!!!  dayum.  I've been seeing a lot of stuff hitting the inbox about sub-prime loans lately.  It seems to be alive... if not well. 
Jan 25, 2008 01:29 PM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
I refuse to answer on the grounds that it might incriminate me....hehehehe
Jan 25, 2008 01:31 PM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public

I had one too not long ago at all...similar story.  Not stated, but 601 credit score 9o% LTV purchase at $380K.  Same percentage and rate.  Best of all...same time frame.  Three business days between submission and closing.  This during refinance part of the month even! 

Media bias just does not want to tell this story I suppose...

Keep up the good work and congratulations!  BTW, Who did you use for the transaction?

Jan 25, 2008 05:33 PM
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Jason, GO JASON GO JASON GO GO GO JASON!!.  Sub prime is still alive..and with rates dropping the sub prime rate really is as nasty as it could be.
Jan 25, 2008 10:14 PM
Sandra Cummings
William Raveis Real Estate - Guilford, CT
Real Estate Agent, Guilford Connecticut
Jason - Great job - First one I heard of in a long time....So who was the lender?
Jan 25, 2008 11:25 PM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Jason,
Well knock me over with a feather!  I have been told by trusted lenders "no chance". 

Jan 26, 2008 12:40 AM
Sharon Filbig
Prudential California Realty - Escondido, CA
San Diego County Real Estate
Well, there ya go.  Consumer perception is SO not based in reality!  Thanks for getting the word out that what's perceived as impossible isn't always.  Way to go, Jason!
Jan 26, 2008 02:37 AM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public
Just for anyone else reading this...the lender I used for this was Wilmington Finance.  I would use them again in a heartbeat.  And the client is satisfied with how they handled the transaction.
Jan 26, 2008 03:11 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

J,

Do you think that was one of the few that are slipping though the cracks?

Jan 26, 2008 05:15 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jason,

You make me proud! Well done.

 

Bill

Jan 26, 2008 07:15 AM
Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source
It's out there....just need a good BROKER like JASON to find it. Well done little buddy!
Jan 26, 2008 08:05 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate
Okay, so the rate and terms aren't great but at least they still exist...who knew?
Jan 27, 2008 08:15 AM
Vincent Coccia
Construction Services Integration - Paoli, PA
Good info to know for myself and my clients. Thanks. 
Jan 27, 2008 01:10 PM
Bruce Davenport
Supreme Lending - Fort Washington, PA
Sr Loan Officer at Supreme Lending NMLS # 2129
Way to go Jason keep it going?
Jan 28, 2008 06:14 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Lane - Don't let the moderator...er...man behind the curtain for you.  The AR Gods are trying to screw with poor old me.

Jacobson - You have yours coming my friend:-)

Sarah - Emailing you momentarily.

Matt - Actually, it wasn't that bad....some punk stuck a 1 in there to incriminate me:-)

Sandra - I'll email you as well.

Cynthia - Thee of little faith:-)

Sharon - Thank you and you are very right.

Sarah - We use them occassionally as well.

Neal - Actually, no I do not.

Bill - And that would be an honor, thanks!

Scott - And an underwriter like you...

Diane - I gotta disagree, I think the rate in this case was pretty darn strong considering the circumstances.

Vincent - Thanks for stopping by.

Bruce - We can be pretty good, can we not?

Jan 29, 2008 03:02 AM
Rick Kellow
Cherry Creek Mortgage - West Bend, WI
FHA & Reverse Mortgage Expert
To all people reading Jason's blog... I commented on his blog and we have since emailed back and forth on a number files I'm having challenges with and Jason has been very helpful... this guy is a class act!!!
Jan 29, 2008 03:39 AM
Bill Duby
Buyers' Brokers Realty - Orinda, CA

Jason,

Please email the lender and any others that do that type of loan. I am looking for a 90% ltv SIVA, 720+, rate and term, loan amount 500k loan, OCC and a 90% ltv SIVA, 720+, purchase, loan amount 250k loan NOO. Can you help? I am in California.

 Thank You In Advance,

Bill Duby

Jan 29, 2008 07:29 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Rick - Wow man, thanks for the kudos!!!

Bill - I just emailed you.

Jan 29, 2008 07:49 AM
Wendy Abner
Xeon International - Bradenton, FL

HI Jason

 

Would like to know who you use as well. Hi Bill Duby from By Referral!! Would like to us eyou as a resource fro good lenders, and reps as so many are gone.

Jan 29, 2008 08:41 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I'll be emailing you shortly Wendy.
Jan 29, 2008 08:43 AM