Need Help with Refinancing Options

[Seth M.]

Hi everyone,

I purchased a property via 2nd lien foreclosure in Los Angeles County. I am going to be an owner occupant in this property. I am having trouble finding a lender who will allow me to cash out the difference after paying off the remaining senior lien at closing and wanted to see if others have any insights. Situation below:

2nd lien purchase- 170k. Title recorded in my name in June. Property is now vacant.

Remaining 1st lien payoff- 680k

Appraisal- 1Million

My goal for the refinance is to get an 80% LTV product. $800k loan minus the 680k payoff at closing leaving 120k cash out. As of right now, the lenders my broker has spoken to are all willing to do a rate/term pay off for the senior lien but will not cash out. I have been in communication with senior lien throughout and also asked prospective lenders if 'reinstating' the senior loan temporarily would open up more options but so far no luck. I haven't gotten a clear "why" answer for the cash out limitations. Any thoughts/recommendations? Thank you!