Sometimes you should just buy boxes.
As an Arizona Mortgage Broker
I have available a wide array of funding sources. We are able to fund from Wholesale Lenders, Banks and Private Individuals with deep pockets. We use all sources to find funds for a borrower. My goal is to always find a source of funding for everyone.
We work with borrowers from those ‘A paper people’, the ones we all love to deal with, to those who have a toxic credit score. The A paper people are the ones with the 800+ credit score and a 30% down payment and high paying jobs. The toxic borrowers are the ones with a credit score down in the low 400’s and numerous red flags on their credit report.
What I’ve learned over the years in the business that there is always a source of funds for the borrower, it just comes down to Loan to Value, and ability to pay.
However their comes a time when no matter how hard you work and look you are not going to find a lender that will lend. For example, one recent borrower need a $11,000 loan for their home. It turns out that the $11,000 was to reinstate the current 1st position loan that was currently in default with a foreclosure date set. Additionally the borrower owed $145,000 on a home that was comping out at $135,000. And on top of that he said his credit score was ‘not so good’. I gave him three options.
- Try to negotiate a loan modification. (He said he did, but they said no).
- Go back to the lender get on your knees and ask for a forbearance and reinstate the loan.
- List the home as a short sale.
- Sell something and get caught up.
- Or buy boxes – you are going be moving.