Creative Investment Opportunity - Wilmington, CA - LA County

[Matthew Kidd]

I made this post a few days ago while in a rush and got a surprising amount of interest in the North Carolina area, only to realize that my post was missing the "CA" portion, very crucial information. I am reposting this properly in hopes to get a similar response.

I am a seasoned Mortgage Coordinator with extensive experience in the mortgage industry. I am currently working with a client facing a rather unconventional situation, and I am reaching out in the hopes of gaining some valuable insights and guidance.

My client, a 78-year-old woman battling cancer, is in a predicament where traditional mortgage loans as well as reverse mortgages are proving to be unattainable. Her sincere desire is to continue residing in her cherished home until her passing, a sentiment I deeply admire. To this end, I am exploring the possibility of engaging with hard money lenders who might be willing to facilitate the payoff of her overdue notes while permitting her to remain in her residence until she passes.

Here are the pertinent details regarding the property in question:

1st Mortgage: $160,000
2nd Mortgage: $56,000
PACE Loan: $80,000 (with a potential lower amount of $40,000)
Property Appraisal: $560,000 (as of 05/03/23)

Location: Wilmington, CA - LA County

The PACE loan caused the property taxes to increase from $1,200/yr to $9,000+/yr which further caused her mortgage payment to increase by $750/mo. She's unsure of the total she owes on the PACE loan. I'm doing what I can to get that information. She's on fixed social security income of $1,800/mo, and no other funds. She is falling behind on her payments and needs drastic measures to take place before an inevitable foreclosure takes place. She has agreed to continue making HOI/PT payments while living in the home.

Upon the settlement of all outstanding debts, the equity in the property is estimated to be no less than $270,000, conservatively speaking. The property itself is in satisfactory condition, considering its age and has the added benefit of being located in the desirable Wilmington area.

I fully comprehend that this is an unconventional and somewhat ambitious endeavor. Nonetheless, I encounter similar scenarios frequently in my line of work across the country, where individuals possess substantial equity yet are unable to secure traditional mortgages. Their foremost wish is to spend their remaining days in the comfort of their own homes, and it is my mission to explore all available avenues to make this a reality.

I would greatly appreciate any insights, advice, or information that can be provided on this matter.