All Forum Posts by: Frank Y.

Andrew Michael Thank you so much for the response. Loan doc says 15 day grace period and she was late once for more than 15 days and paid the penalty. I have pushed hard to make sure she purchase insurance before the effective date of cancellation each time. Of course I will buy Insurance (and bill her) if she fails to purchase Insurance on time. Is there a saying that you start foreclosure process only after the borrower missed four payment? Thanks.

Hi, I have a private money borrower who always pay interest payment late. Every month I have to email her and text message her about the payment. She is always late. Another thing bothers me is that the home owner Insurance has been canceled three times due to her “no payment”. One of her checks was returned due to no sufficient fund at her account. What shall I do with this borrower? Can I foreclose her? Any suggestions will be appreciated. Thanks.

John Cassel If all other options are not possible, and if the deal and a great one, you can considers private money, then refinance with banks. Some Banks needs seasoning (6 months to a year) before they will do the refinance. But there are some banks, especially credit union don’t need that. We are local private lenders close to York PA. If you need, you can reach out to us. Good luck.

That’s a scam. Just ask him how much upfront money he wants.

As a private lender, I want the borrower has skin in the project, has clear exit strategy (either flip or hold), reliable, and has some experience. I prefer 6 month or less term. Thanks.

Find out exactly why all banks denied you and make change/improvement. If you credit is not good, go fix it. If the deal is not good enough, move to the next one. Banks want to lend money out, but to the right borrower and deals. Good luck.

At current market, 6.5% for private lending is difficult to find, especially with such small amount.

Talk to an attorney to have the attorney draft loan documents, such as mortgage, promissory note, personal guarantee. Make sure you are the first lien holder. Make sure the borrower has skin in it. Do your due diligence, both financial and legal. Good luck.

It is financing. But you don’t have to have contingency if you are very sure the lender will finance you the deal without any problems. Good luck.

As long as this is your primary residence, you are ok.