The answer!!!:
Michigan is currently the worst declining state in the nation. Some markets as much as 30% already. Sure, there are homes for sale, but most are not selling with any reasonable market value compared to the rest of the country. The ones that are selling, (a good majority of them) I have found are distressed sales way below market value.
Therefore, any true comps to compare your property to refinance too, are far, not like, and a good majority of them are distressed sales. Therefore the answer to the scenario: There was never a deal with the numbers provided.
You have a client with 90% LTV, Michigan, with a one year in the property. Purchase price was 200,000 and client believes he has 10,000 more equity in the property from the purchase last year based off homes for sale in the area.
Client is drowning is debt and has 38,000 in revolving debt with a 580 mid fico
Question? What would you do? What program, and yes this is a trick question can you find it??
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