My team and I are having some trouble finding private lenders for our projects.

The Lender/s are already in strife, having lent way too much on it! 

Does anyone have a lender in Columbus that originates wrap mortgages?

Hi @Dana KelleyYes, it will cost you more for investment properties as it's considered as a higher risk to lenders.

Account Closed now after I posted I see that HML stands for Hard Money Lender.

Or if you use that 50k for down payment with the rest financed with a private money lender.

I'd recommend reading through your documents and perhaps discussing it with either your lender or attorney.

There must be another reason, and it may be the lenders attempts to get around the tax laws.The treatment of the property would not impact the ability, or lack of ability to foreclose in the event of a default.

As to your question: I believe that for any loan over 78% loan to value (an FHA with 3.5% down would have a loan to value of 96.5%) you have to pay private mortgage insurance (PMI) to protect the lenders in case you default on the loan.

A short sale, and all that entails, is the only option, prior to the foreclosure, and only if the lender will delay the foreclosure for the short sale.