The Foreclosure Bailout Loan is a type of Hard Money loan. The loan is a short-term, asset-based loan, secured by real estate and used solely to help someone in foreclosure. The loan proceeds are used to pay off the current loan in default or to pay back payments needed to bring the loan current.
Loan sizes range from around $75,000 - $5,000,000
These loans are usually offered by private lenders. The lender will review your property's value and equity. Generally you will need 35%-40% equity to qualify.
No. Most private lenders approve loans based on property equity rather than credit scores. These lenders realize that a homeowner going through foreclosure, will not a great FICO score, so usually credit scores don't matter.
There are no minimum income requirements or income documents required but you should have enough income to pay for the new loan. payments.
Usually, no appraisal is required. Sometimes a lender will require one but it would depend on the loan type. For example, if the property is a commercial property, the lender would require an appraisal.
Most private lenders use online websites that will show property values. Popular websites that show property values are Zillow, Redfin, Realtor.com etc.
No, there are no upfront costs. There will be loan, escrow and title costs but they are built into the loan amount.
Yes, if there is enough equity, you can take a portion of it in cash at closing.
Foreclosure Bailout loans are short term loans that meant to get someone out of foreclosure and give them a little time to get a longer term loan set in place. The typical time allowed to pay back this loan is 1-3 years.
Once we receive your quote form, we can usually get an answer within 2-4 hours same day or next morning.
This loan can be closed quickly, within 5-10 business days, providing there are no title issues that arise.
No, private lenders do not collect taxes and insurance. You would pay these on your own or they will still be collected by your mortgage company if you are keeping your first loan in place and getting the private lender loan as a 2nd loan (equity loan) against the property.
A lot of times, yes. If the lender issues a loan quote and the homeowner accepts the lender's offer, we can contact the trustee and notify them that we are processing a loan for you and the trustee usually will postpone the scheduled sale date to allow you time to close and pay off the loan in default.
Yes, provided you dismiss your case before closing the loan.
Yes, we can start processing the loan provided you have the authority issued by the court to act on behalf of the estate.
Yes, as soon as escrow is opened, a Preliminary Title Report is ordered. This report will show all liens against the title and any that will need to be cleared at closing.