Request: Refinance owner occupied house for ETO to pay off 3 years of property tax arrears to stop property tax sale notice. Medical service plan judgement registered on title also required to be paid out during the refinance along with over 40K of consumer debt, most being in R9 status.
Challenge:
- Property located in small bedroom community on a 5 acre parcel located within the ALR
- House was very original and dated with evidence of asbestos and knob & tube
- All consumer debt riddled with major derogatory history, 5 of 6 trades show R9
- 8K judgement on title placed by government medical service plan for unpaid invoice
- 3 years of property tax unpaid with house being slotted for property tax sale
- Required LTV exceeded the approvable norm
Results:
- DLC agent referred to Plan B where an approval was sourced out the next business day
- Appraisal was ordered from lenders preferred list of appraisers
- Appraised value came in low driving LTV above the original approved LTV
- House condition and its contents resulted in original approval being declined
- New lender and approval was required and successfully sourced out to 78% LTV
- Same 2nd mortgage rate was obtained as was on the original lower LTV approval
- All consumer debt was paid, property tax paid in full to stop tax sale and title was cleared of judgement
- 2nd approved @ 12% rate with 4% lender fee
- This solution fit in the clients household budget
- Referring agent to receive 200bps