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Updated almost 4 years ago,
Hard money lender won't roll over a bridge loan
I'm looking for recommendations, What would you do? I thought this person was of quality and a friend in the REI sense... I have always referred him people both local and out of state. But with my current dealings with him I have been crushed at his actions and have no clue what to do...
May 2020 purchased a Duplex on a hard money loan 3 points 12% rate, I had 5 deals done before and a 750 credit score.
I finished the rehab in November, Asked the lender to do the bridge roll over into a 30 year. He talked me into looking into having a bank do it for a lower rate. I searched for a lender but since the house is in an LLC name no-one would do it. I asked a lender I have worked with in the past to do it for me and they ordered the appraisal and it came back hirer then I expected at 120k Great news! But with the new credit pull my score was lower at 680 and since COVID they would only do 60% LTV with the 680 score. My score decrease was a result of using my personal credit cards to do rehabs with and ran my cards up, lowing my score. I asked the hard money lender currently on the loan and he said he could do 70% at that score. This was in December. From December to today the same hard money lender has drug his feet collecting his interest only payments and dangling me along to keep his 12% interest income. Every week I would call or message him with comments like, "I'll have it done Friday, I got swamped and trying to catch up, I'll have it done over the weekend..." I since went with another lender and waiting on Title now and should be done in a week, but because of the current hard money lenders actions I will have paid 3 months of additional payments because of his unethical actions. PS I do have my
What recourses do I have for this lenders Unethical practices?