I am not making a moral case out of this either as I would be thrilled if my low income neighborhood became gentrified.

Unless, of course, a moderate rehab could boost the value to say 75k.

Instead of attempting to keep a borrower on the constant edge of failure and earning less, it's actually more profitable in the long run to advance your borrower more like a partner than a servant.Many borrowers also assume they can't get conventional financing, while I know some HMLs point them in the right direction, I'm sure there are just as many who would allow that borrower to continue thinking that the HML is his only hope.With that, if HMLs were to address a better standard of ethical and moral conduct thier public standing would certainly improve, being known as a specialty lender than a "hard money" loan shark.

This is a way to boost score fast.

I would go myself and repeat the process of what he did and get the phone number, then do the deal if i could.Then, i would attend his meetings and tell everyone what a moral hazard he IS.I would then post about it here on BP.Then, I would pay a visit to him - Disclaimer - (this part is hypothetical of course)

This is a business, and while having morals and doing the right thing are important, numbers are the key, not emotions.

It appears your credit needs a boost otherwise you should be looking at closer to mid 3's%.

If you can boost the rents over time to squeeze this puppy into the positive cashflow side, then this dog will hunt.What is the condition to the property, and why is the seller so eager to dump it, er sell it to you?

Moral of the story, think outside the box, serve those who are not served but can sell or buy.

You would just haveto start all over with actual permits, thus boosting the appreciation value, or After repair value (ARV).