Pre-approved and then turned down 3 weeks later

Apollyon · Joined: 17 Sep 2006 Posts: 6

I was pre-approved for a loan, found a house, made an offer that was accepted, and three weeks into escrow the lender tells me they can't make a loan for 15-k, as they wouldn't make any money.
House was listed for 32.5

Anyone out there know of a lender that will lend 15-k ?

chow · Posted: Sun Sep 17, 2006 10:03 am Post subject:

That's a pretty small loan amount. Most lenders only do lines of credit for anything under 40K.

Try going into a local bank and making application for a line for credit on the house. We bought our house that way because it was such a small loan amount.

Apollyon · Joined: 17 Sep 2006 Posts: 6

chow wrote: That's a pretty small loan amount. Most lenders only do lines of credit for anything under 40K.

Try going into a local bank and making application for a line for credit on the house. We bought our house that way because it was such a small loan amount.

Thanks we did look into that the only bank that would do that wants more than I can come up with for a dowm payment and escrow/closing costs all most 4k.

chow · Posted: Sun Sep 17, 2006 9:57 pm Post subject:

Then you need to tell the full story. :wink:

If you have a lot worth that amount and a credit history-they will work with you.

I can go out and buy anything I want as far as real estate with my signature under 150K on a line just by proving I breathe. If I pass a pulse-I can get myself into trouble!

I'm here to tell you-If you have credit you can cash out, purchase and go on a HELOC all at the same time.

(NO, I don't advise 99.999% of America try this-because they don't know how to drive a nail with a hammer-let alone balance a checkbook while goofing around with contractors.)

Apollyon · Joined: 17 Sep 2006 Posts: 6

chow wrote: Then you need to tell the full story. :wink:

If you have a lot worth that amount and a credit history-they will work with you.

I can go out and buy anything I want as far as real estate with my signature under 150K on a line just by proving I breathe. If I pass a pulse-I can get myself into trouble!

I'm here to tell you-If you have credit you can cash out, purchase and go on a HELOC all at the same time.

(NO, I don't advise 99.999% of America try this-because they don't know how to drive a nail with a hammer-let alone balance a checkbook while goofing around with contractors.)

How would you like to hold a note for 15k It's a 1500 sq ft house on 3-lots
In north New Mexico ,heck the tax roles show it as 65k.
Im going to call and see if I can use my va loan and hope when they stop laughing they can give an answer...... :lol:

chow · Posted: Mon Sep 18, 2006 10:19 am Post subject:

If the tax roles show it as 65K and it's for sale for 15K then it needs work-maybe a well, and septic? If you would tell the whole story, we could help you better. When you ask for help, or a loan for that matter there is just a few things that are more improtant thena the price of the house-or in this case I suspect "land loan."

For a home loan, the dwelling must be habitable. It has to have a bathroom, kitchen, running water, waste disposal, electric power made by some form of acceptable source. I'm here to tell you, we bought 3 lots with a "house and garage" on the property.

It also came with 60 amp electric, 2 out houses, a ceramic bowl and pitcher in the "bathroom." The water source was a cistern with a lead gas pipe, that came into the house for the kitchen sink. Oh, it had termite condo's in the "crawl" space.

Moving onto the "yard".....The Hudson and Nash graveyard that is......Well, let's just say we sold the contents of the "Yard" in parts to any antique car nut who needed chrome, windshields, rear ends, motors, coils, hub caps......screws. did you know when you enter a car in these contests you have to use original screws, nuts and bolts? I raked theose puppies up and sold them off by the coffee can fulls! Thank heavens I grew up across the street from a antique auto collector!

The bank laughed at the "home" loan. They gave us a line of credit secured by the land. Since it was a line of credit there wasn't that many closing costs.

Apollyon · Joined: 17 Sep 2006 Posts: 6

[quote="Apollyon"] chow wrote: Then you need to tell the full story. :wink:

If you have a lot worth that amount and a credit history-they will work with you.

I can go out and buy anything I want as far as real estate with my signature under 150K on a line just by proving I breathe. If I pass a pulse-I can get myself into trouble!

I'm here to tell you-If you have credit you can cash out, purchase and go on a HELOC all at the same time.

(NO, I don't advise 99.999% of America try this-because they don't know how to drive a nail with a hammer-let alone balance a checkbook while goofing around with contractors.)

How would you like to hold a note for 15k It's a 1500 sq ft house on 3-lots
In north New Mexico ,heck the tax roles show it as 65k.
Im going to call and see if I can use my va loan and hope when they stop laughing they can give an answer...... :lol:

The house is rented everything works It Is old and needs to be up dated reason for the drop In price Is that the owner Is in an old folks home and the property is in a trust with all 6 kids on it they want it sold.
House had been on the market for over a year with no offers.

chow · Posted: Tue Sep 19, 2006 3:32 am Post subject:

:roll:

darkstar · Joined: 27 Oct 2006 Posts: 58 Location: Hodgenville, KY

Why don't they borrow 40K, and use some cash to fix up place...If they decide not to use it, pay it back to lender...Just check for possible prepayment penalties on large amounts applied to principle with any se period of time...Borrowing that much money will make it easier to get this done also...

Apollyon · Joined: 17 Sep 2006 Posts: 6

darkstar wrote: Why don't they borrow 40K, and use some cash to fix up place...If they decide not to use it, pay it back to lender...Just check for possible prepayment penalties on large amounts applied to principle with any se period of time...Borrowing that much money will make it easier to get this done also...

The lender will only lend on the purchase price,15-k. If i owned the property i could get a re-hab loan .

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

If you are credit worthy ask your local bank or credit union to make the loan.

There's something wrong with this house. There's gotta be.
If there was nothing wrong with the house a local investor would have snapped this up even with hard money a long time ago.

Selling for 1/2 to 1/4 the tax value and on the market for over a year with ZERO offers? NONE?

Spend the money for a full house inspection before you put out another nickel. It will be the best money you ever spend.

BTW darkstar, take a few seconds to see things from a lender's point of view before you offer advice on bumping the purchase price.
Every lender in the world would see the MLS listing for $32,500 on the appraisal and the fact that it didn't sell for at least a year but all of a sudden the sellers get offered $40? Yeah, right.

darkstar · Joined: 27 Oct 2006 Posts: 58 Location: Hodgenville, KY

40k was arbitrary...If they set up for repairs, it wold make it easier to get done was my point, at whatever number...

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

I think that with a whole year gone past, any price over the listed price is going to throw up a red flag. Even at the list price I think is pushing it.

Apollyon · Joined: 17 Sep 2006 Posts: 6

Mac wrote: I think that with a whole year gone past, any price over the listed price is going to throw up a red flag. Even at the list price I think is pushing it.

I don't think so this is a very remote part of New Mexico,the three lots the house is on is worth 15k.
Tried a loan with my bank they wanted to know what the money was for and as I told them the truth they said as the bank and i are in California and they don't have banks in NW they would not make a loan.

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Apollyon, maybe it just isn't meant to be. I question how attached you are to the property to the point of wondering how you found out about it. I think there is even more to this story like perhaps you know the tenants or you are one of the heirs. Not that it matters, just curious.

$15K is a very small loan amount and its extremely difficult to find a lender to fund as you already know, any chance of taking an equity line against your existing home to fund the loan? Have you researched any of the local New Mexico banks?

I don't know if hard money will even do such a small loan but you might check into that.

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