Title Report Back----NO LOAN FOR YOU

[John Thedford]

I have been working with an "experienced investor" stating he needed 200K before year end to "start the new year off right". The borrower was kind enough to provide me "comps" showing a value of over 200K for one of his properties. I just don't see it. I told him I would need a full appraisal to move forward. He responds that he has a current appraisal..but then cannot find it LOL. I learned a valuable lesson from @Jay Hinrichs about doing HML and asking for an appraisal. I think this borrower is full of it. On the second property, I agreed to a small loan. I just got the title commitment policy. Borrower has outstanding federal tax liens, judgements, code enforcement violations that are not paid, etc. I did not ask for a credit report because judgements and liens would show on the title report. This borrower is NOT credit worthy. HML can make great money if you follow simple rules:
1. credit worthiness of the borrower---HE FAILED
2. capability to repay the loan---NOT CONCERNED NOW
3. collateral---just not worth what he claims.

[John Thedford]

This borrower is, IMO, dishonest, and cannot be trusted. He states all these problems will be paid at closing. There are TWO federal tax liens, about 7 judgements, and unpaid code enforcement liens. To top it off, he is trying to BS me on the value of a property. He states it is worth over 200K but cannot find the appraisal. A quick look makes me believe it may be worth 160K. He may pay them off at closing, but NOT with my money. So far, FOUR no's haven't been understood by him, I just blocked his number:)