All Forum Posts by: Seth M.

@Jon Desmond

Wow this is a really great resource. Thanks for taking the time to share your research.  A few updates below as of 6.10.22

PennFed and US Bank are not currently offering HELOCs for Non owner occupied. (recent change according to the loan officer)

Freemont- 60% LTV. 3.99% for the first 6 months but then it's Prime +3.5% so not very competitive

SRI federal credit union has great terms but they won't accept any rental income for qualification. So your W2 income has to cover all of your investment property liabilities for DTI calculation

Southland CU- 6.25% was my initial quote for NOO

Bank of the West- First call said 65% max LTV and the second person I spoke to said 80%. With misc. discounts, they quoted me a margin of 2.74% above prime

Uncle Credit Union- 80% LTV and good terms posted online. But it was very difficult to get a loan officer on the phone and my impression is that the application process and servicing could be a nightmare.

@Caroline Gerardo 

Thank you for the advice. You are spot on about the risks and I have been in contact with the senior lien trustee throughout the process. The senior lien had been in an out of foreclosure for 3 years and is currently on hold but like you said very likely will be active after the 30th and auction scheduled 30 days later. 

The 680k payoff amount is all-inclusive of fees/penalties/back taxes/insurance etc.  The unpaid loan balance is only 565k. My plan B if I were to run into challenges/delays in closing the 1st lien full payoff is to reinstate the senior lien with cash to put the loan in good standing and then refi later.  I have the current re-instatement quote and payment instructions. 

@Caroline Gerardo @Jesse Rivera @Kevin Luttrell @Zack Karp

Thank you all for the feedback and advice I really appreciate it. 
Yes I will be owner occupant and title was recorded in my name in early June. It has recently been vacated and we move in October 1. I ran the preliminary title report before the trustees sale, and title insurance was just waiting for it to be vacant which happened this week. 
I already have the underwriter sign off for the 800k loan amount but I was stuck trying to figure out a way to do a cash out vs rate term and cash out later. But you answered my question and I’m not sure why I was overlooking the 6 month seasoning period.  

I will go ahead and just get the 680k to secure the senior lien layoff and initiate cash out options later. Thank you again!

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!

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 minus closing costs. 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 with the lenders I've talked to. I haven't gotten a clear "why" answer for the cash out limitations. Any thoughts/recommendations? Thank you!

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!

Hi @Jo-Ann Lapin.  I purchased at the trustee sale on June 2nd. Title was perfected on June 11.

Hello I recently purchased a property at a Los Angeles county trustee sale via the 2nd lien foreclosing. Title has been perfected and 3 / 90 notice has been served to the current owner. 

I am in contact with the senior lender trustee and I have received the payoff details for the remaining loan. Ideally, cash for keys or eviction process would go relatively quickly and I could just payoff the senior lien via escrow when I finance the property considering the foreclosure file is currently on hold and when they reinstate it, they would provide notice of sale. 

My question is-  given these circumstances and the unknown implications of an eviction moratorium extension and/or drawn out process, should I go ahead an reinstate/assume the senior loan since whatever I pay out of pocket would just be reducing what my lender pays off when I finance it? Other than having to assume the monthly payments, are there any downsides I'm not considering?   Thanks!

Hi I am trying to find a funding option for an upcoming in person auction in Los Angeles county that requires cashiers checks the day of purchase. I have a conventional pre approval for significantly higher than my max bid and I have completed all of the title and lien searches. It is a SFR and will be our primary residence. I'm in search of options for funding the cash purchase and then I will be immediately refinancing. Thanks in advance for any recommendations!

Seth 

@Jacob Repreza Thank you for the recommendation. I will reach out to them to see what options they have.

@Andrew Postell Great suggestion. I will post there as well