Need Cash-out refi's on Central Florida Investment Houses

[Cheyenne Davis]

I've read through lots of posts here, and haven't seen exactly what we need, so figured I'd try a new thread.

Here's the situation:

I have a partner who owns several small rental houses in Central Florida. Ideally, they're just looking to cash out-refi on one right now, and several more in the near future. All are owned outright. Most are worth around 100k each, give or take a few bucks. 

They were approved on a 30 yr fixed cash out refi with New Silver (80% of appraised value) and the house they wanted to refi only appraised at 80k, and the minimum appraised amount allowed with New Silver is 100k. 

They're looking for a lender who will do a 30 yr fixed (preferably, but would consider other options as last resorts) on a house that's valued at around 80k.

There's a couple stips to get past...

1. They had a bk with foreclosure 8 or 9 years ago, BUT the bank didn't complete the foreclosure (with deed going back to them) until around a year and a half ago.

2. They need an asset-based lender. Fannie won't work because, even though they own several houses in their business name, they don't own their primary. DTI is an issue, also.

Small local banks don't seem to be a good fit for these guys, unfortunately. Pretty sure it's the DTI issue, plus previous foreclosure.

Can anyone recommend options?

Cash out refi (30 yr fixed) is definitely their preferred choice, but if that's not possible, they would consider bridge loans or equity lines, etc.

Anyone in the lending business who may be able to help, please reach out to me :)

[Cheyenne Davis]

Originally posted by @Melvin List:

@Cheyenne Davis the foreclosure timeframe will go off of the BK date so you should not have a problem there.  There are tons of programs out there that will just go off of the Debt Service on the property.  I would expect 75 to 80% loan to value.

Unfortunately, they've found the opposite to be true. Many lenders (to my surprise, because logically it makes little to no sense) are going off of the time from which the deed transferred back over to the bank, as opposed to BK discharge date.

75%-80% is fine, but all lenders they've found to date seem to have an either 100k appraised amount minimum on subject property or they have an issue with the foreclosure completion date being to recent. 

Do you have any suggestions on lenders that may do what they're trying to accomplish? Hopefully you can suggest lenders that they haven't found yet or tried.