First thing I would do is call the bank and talk to someone. I'd call a few banks just to make sure they aren't trying to pull one over on you. Last thing you want is for them to say "yeah yeah no problem, pay me $2000 for an appraisal" and then not get it.
Honestly, if you have a job I don't see why they wouldn't give it to you. If anything I'd think your line will be low because of your risk factor. But i dont know all the new crazy restrictions
Honestly, if you have a job I don't see why they wouldn't give it to you. If anything I'd think your line will be low because of your risk factor. But i dont know all the new crazy restrictions
Im trying to do the same thing. Own the property free and clear but credit rating is horrible. Went to my bank and they damn near escorted me out out after looking up my credit rating. Apparently that and your account balance is all they look at. Ive tried a few of these "financial loan" places but they top out at $1500-$2500 bucks and even then want close to 20% interest.
Im looking to get less than a 1/3rd of the value of my property but from what they tell me they have so many repossessions now they just dont want anymore. The old cliche "it takes money to make money" has never been truer than it is today. A poor man is just fucked in this economy..
If anybody knows of any places making these type "collateral only" loans id love to hear about it....
Im looking to get less than a 1/3rd of the value of my property but from what they tell me they have so many repossessions now they just dont want anymore. The old cliche "it takes money to make money" has never been truer than it is today. A poor man is just fucked in this economy..
If anybody knows of any places making these type "collateral only" loans id love to hear about it....
I was in the mortgage industry for 5 years and basically once you drop below 500 credit score wise which I am sure "really bad credit" insinuates 
) ) then the only loans u can get are not from walk-in banks but from private mortgage funding which will be in the range of 14-25% interest / around 5-10% closing cost(very costly in comparison to most)/ and 65% ltv max ratio (which means u can only borrow up to 65% of ur house value and the 5-10% closing fees go into that 65%. (also known as a Hard Money Loan)
so if u are free and clear u can get a loan but they are under those circumstances and surely it will not be called a Home Equity Line of Credit (HELOC) because home equity lines is just a coined term from being able to draw from the value in ur home.. like a usable checking account sometimes up to a certain value of ur home.. on normal occasions its 90% fully funded on the day of closing.. but some people get a HELOC with a 50k limit and never use a $.
I suggest u use the internet to find private lenders(I have included a site below which is resourceful).. depending on the state that you are in there may be a lot of them... but to find the ones doing business today I suggest calling a Mortage Broker(not a bank) and discuss options with them including talking about private funding.. they may no investment companies who do that sort of thing.
here is a website for some assistance and a state by state directory of private lenders ...but they do want a fee to show u ALL of them so just choose ur state and start with the ones who they have free links /info for - http://moolahlist.com/
honestly though if u contact a local mortgage company they will prolly know a company who does it for them but its rarely if ever used due to the rates and penalties/fees/etc
also.. this one is more doubtful.. but FHA loans are based on your credit which is still good and qualifying that way.. it does not count credit score into the equation.. on a RARE occurance I have seen people with 450 credit scores get approved.. but I am telling u it is RARE and its for someone who might have lost a car due to repo or something but every other bill is paid like clockwork including any past mortgages.. the repo took their credit score to the shits.. but they are still a "good borrower" fha wise.
here is an example of some of the lending companies in California I found with google and below that is a little article about hard money loans
gl
-murph
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</tbody>Would you lend to a borrower in foreclosure? Or someone looking to buy a large ranch whose value couldn't accurately be determined with a standard appraisal? How about refinancing someone's mortgage so the person can take out hundreds of thousands of dollars in cash?
For "hard money" lenders, it's all in a day's work. These private individuals and small local companies operate where even subprime lenders fear to tread, making loans to the desperate and needy the same way regular banks and brokers service traditional customers. They're harder to find than mainstream lenders and they don't come cheap. But they can help hard-luck borrowers make bad situations better -- and sometimes, they're a consumer's only choice.
"There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up," says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara, Calif. Brokers and other intermediaries who arrange hard money -- or private money -- loans "go to people who have money to lend and they match them up with people who can't get money any other way," Strickland says. Home buying the 'hard' way. If that sounds a little like how the Mob works, don't worry. Hard money lenders aren't loan sharks who break borrowers' kneecaps when they can't repay. At the same time, these lenders aren't your Granny Sue. They charge interest rates and fees that would make conventional borrowers cringe and often base lending decisions on whether there will be enough equity in their subject homes that they can foreclose and still turn a profit. But private money fills a niche in mortgage lending, helping consumers who have specialized needs or too many credit problems to get conventional financing.
"It's across the board," says Brandon Thompson, a private money broker in Denver. "You'll see anything from a $70,000 foreclosure to a half-a-million-dollar loan, where somebody just needs so much cash out and can't verify their income to make it worthwhile for a traditional lender to look at." For instance, Strickland says one of her hard money lender friends recently did a construction loan for someone building a cabin near Yosemite National Park. Regular lenders balk at such deals because they don't like financing properties in remote locations or those that aren't of standard frame, concrete block or other traditional-type construction. Rural buyers sometimes use hard money loans, too. That's because conventional lenders get antsy about mortgages for properties that derive a substantial portion of their value from the land rather than the house.
Buyers of expensive properties and those who already own such homes and want to cash out large amounts of their equity via refinance loans also turn to private money. So do real estate investors. These buyers purchase properties on the cheap, fix them up and sell them for profit. They use private loans because the loans come with less red tape and restrictions than bank loans.
Borrowers facing foreclosure make up the last major category of hard money customers. When someone misses a mortgage payment, that person usually has some leeway to bring the loan current. But once a 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. At that point, the borrower is so far behind that even subprime lenders are reluctant to come in, refinance the loan and start the clock ticking again.
) ) then the only loans u can get are not from walk-in banks but from private mortgage funding which will be in the range of 14-25% interest / around 5-10% closing cost(very costly in comparison to most)/ and 65% ltv max ratio (which means u can only borrow up to 65% of ur house value and the 5-10% closing fees go into that 65%. (also known as a Hard Money Loan)so if u are free and clear u can get a loan but they are under those circumstances and surely it will not be called a Home Equity Line of Credit (HELOC) because home equity lines is just a coined term from being able to draw from the value in ur home.. like a usable checking account sometimes up to a certain value of ur home.. on normal occasions its 90% fully funded on the day of closing.. but some people get a HELOC with a 50k limit and never use a $.
I suggest u use the internet to find private lenders(I have included a site below which is resourceful).. depending on the state that you are in there may be a lot of them... but to find the ones doing business today I suggest calling a Mortage Broker(not a bank) and discuss options with them including talking about private funding.. they may no investment companies who do that sort of thing.
here is a website for some assistance and a state by state directory of private lenders ...but they do want a fee to show u ALL of them so just choose ur state and start with the ones who they have free links /info for - http://moolahlist.com/
honestly though if u contact a local mortgage company they will prolly know a company who does it for them but its rarely if ever used due to the rates and penalties/fees/etc
also.. this one is more doubtful.. but FHA loans are based on your credit which is still good and qualifying that way.. it does not count credit score into the equation.. on a RARE occurance I have seen people with 450 credit scores get approved.. but I am telling u it is RARE and its for someone who might have lost a car due to repo or something but every other bill is paid like clockwork including any past mortgages.. the repo took their credit score to the shits.. but they are still a "good borrower" fha wise.
here is an example of some of the lending companies in California I found with google and below that is a little article about hard money loans
gl
-murph
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| Capital Benefit FICO is not an issue. Borrower needs to show income to support loan request. Lending Territory: CA Crawford Investment Co. Lending Territory: CA ExpressLoan No credit scores required. Max LTV 65%. Must demonstrate an ability to repay. No restrictions from our regular property types. All owner-occupied residential loans require tax and insurance impound accounts. All loans are fixed rate and are available without prepayment penalties. Please keep in mind that we are a private/hard-money lender. Lending Territory: CA MMG Capital No FICO loans for foreign buyers or property owners. Up to 50% LTV and minimum property value of $750,000. Equity-based financing. Lending Territory: NATIONWIDE Windstone Mortgage Corporation No minimum FICO. We are an equity driven direct private lender. Property types preferred are NOO SFR, multifamily & commercial. 65% LTV or less in Southern CA. All loans are fixed rates and usually contain no prepay penalites. Lending Territory: Southern California |
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| Hard money' lenders: The source for last-resort loans | |||
| By Michael D. Larson • Bankrate.com |
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For "hard money" lenders, it's all in a day's work. These private individuals and small local companies operate where even subprime lenders fear to tread, making loans to the desperate and needy the same way regular banks and brokers service traditional customers. They're harder to find than mainstream lenders and they don't come cheap. But they can help hard-luck borrowers make bad situations better -- and sometimes, they're a consumer's only choice.
"There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up," says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara, Calif. Brokers and other intermediaries who arrange hard money -- or private money -- loans "go to people who have money to lend and they match them up with people who can't get money any other way," Strickland says. Home buying the 'hard' way. If that sounds a little like how the Mob works, don't worry. Hard money lenders aren't loan sharks who break borrowers' kneecaps when they can't repay. At the same time, these lenders aren't your Granny Sue. They charge interest rates and fees that would make conventional borrowers cringe and often base lending decisions on whether there will be enough equity in their subject homes that they can foreclose and still turn a profit. But private money fills a niche in mortgage lending, helping consumers who have specialized needs or too many credit problems to get conventional financing.
"It's across the board," says Brandon Thompson, a private money broker in Denver. "You'll see anything from a $70,000 foreclosure to a half-a-million-dollar loan, where somebody just needs so much cash out and can't verify their income to make it worthwhile for a traditional lender to look at." For instance, Strickland says one of her hard money lender friends recently did a construction loan for someone building a cabin near Yosemite National Park. Regular lenders balk at such deals because they don't like financing properties in remote locations or those that aren't of standard frame, concrete block or other traditional-type construction. Rural buyers sometimes use hard money loans, too. That's because conventional lenders get antsy about mortgages for properties that derive a substantial portion of their value from the land rather than the house.
Buyers of expensive properties and those who already own such homes and want to cash out large amounts of their equity via refinance loans also turn to private money. So do real estate investors. These buyers purchase properties on the cheap, fix them up and sell them for profit. They use private loans because the loans come with less red tape and restrictions than bank loans.
Borrowers facing foreclosure make up the last major category of hard money customers. When someone misses a mortgage payment, that person usually has some leeway to bring the loan current. But once a 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. At that point, the borrower is so far behind that even subprime lenders are reluctant to come in, refinance the loan and start the clock ticking again.
its a little harsh to put it that way gtc
honestly for the guys in this thread that have bad credit BUT most importantly they own their house FREE AND CLEAR and/or have a low LTV (loan to value ratio) are way ahead of the game imo.
Kudos to them:
Most people are burried and stuck under their mortgage.. so I am sure life threw them curveballs when they hit the bumps in the road and couldnt pay their bills and the credit rating slipped, but now they apparently have their finances under wraps.. I mean they have their mortgage paid for which for 90% of americans is the biggest burden they carry as homeowners besides the cost of having children.
just some food for thought
-murph
hey dumbshit, my credit is bad because my ex-wife took out a bunch of credit cards and ne'er paid on them. Call me when you have the income and credit level to qualify for AMEX platinum. At least I was able to settle with them for $36K for $.25 cents on the dollar. Call me when get an AMEX platinum and when you can negotiate a settlement of $144K down to $36K.
traditionally private mortgages are not reported to credit so if they arent reporting they wouldnt help it.. but u can tell them u want them to report to credit.
but in that case I suggest u dispute all negative charges against u with the credit companies and get a prepaid debit card that reports to ur credit report.. having that for 1-2 yrs will improve ur report and score but honestly if u dont need credit (dont need a loan/ free and clear mortgage/etc) then dont let ur credit score or past history affect u adversely..but of course if u have plans to do anything in the future then u want to take care of the issues now... start by dsputing the old debts.. u would be surprised by reporting disputes to equifax/.experian/transunion how many they research and cannot get ahold of the company or verify the debt.. By law they have 30 days to do so and after that time the report must come off of ur credit reporting and scoring which is mandated.
as far as a NOO (non owner occupied/investment type home) there is still loans of this nature out there if needed... but honestly if u dont need the loan I wouldnt recommend shelling out the costs of this kind of loan just for a credit rating.
gl
-murph`
haha i have a lot of valuable info inside me that is for sure brother :toast:
as far as the PS comment.. i think u might be talking of gtc although I have no idea how he personally got them but over his 11k posts I am sure he has posted something valuable to the forum and helpful and I assume a mod rewarded him for that a few times.. but no exact answer for ya
-murph
