Private Hard Money Lender in California, Texas and Arizona: Sometimes you should just buy boxes.

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Thursday, March 20, 2014

Sometimes you should just buy boxes.

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.
  1. Try to negotiate a loan modification.  (He said he did, but they said no).
  2. Go back to the lender get on your knees and ask for a forbearance and reinstate the loan.
  3. List the home as a short sale.  
  4. Sell something and get caught up.
  1. Or buy boxes – you are going be  moving. 
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 12
Phoenix AZ 85027