Request: 67% LTV refinance to payout current 1st and 2nd mortgage plus property taxes arrears. 2nd mortgage was in foreclosure. Client was also hoping for some extra funds to inject into business.
- 2nd mortgage being in foreclosure and property tax arrears.
- A stand-alone non flag restaurant with restricted use provides marketability issues.
- Property is completely surrounded by Auto Mechanic shops.
- Restaurants are hard to find financing for due to high failure rate.
- Condition of the property was below average.
- Property under holding company name.
- Expensive commercial appraisal and Phase 1 environmental report required.
- 67% LTV is considered quite high for this type of property.
- Bruised credit with numerous late payments, 1 paid collection and 2 R9’s.
- Deal was referred to Plan B on October 24th. DLC Agent wanted to remain involved and the point of contact for the client. True team effort between Plan B and DLC agent.
- Deal was shopped to many lenders, all declined due to property type coupled with foreclosure.
- Letter of Interest was obtained on Nov 15th, subject to a commercial report and Phase 1 environmental. Appraisal surprisingly came in a little higher dropping LTV to 61%.
- Approval yielded enough funds to fully pay 1st, 2nd, property tax, and still provide about $70k to inject into business.
- The final consolidation allowed for new cash out for the client AND reduce monthly payments by approx. $700/mnth which improved business cash flow
- DLC agent did a great job handling a clearly distressed client who very nearly lost his restaurant and livelihood.
- Referring DLC agent to receive $7,000.00 commission check and a loyal happy client for life