When organizing and facilitating asset sales and short sales the buyers that are interested often need to obtain financing… Many are not sitting on piles of cash. Even with decent credit scores, high incomes, they are getting denied credit from banks. On our end it is difficult enough to find an interested buyer in the current economy, but to then have them be denied for financing is a difficult hurdle to get over. Even if the buyer does get approved, the process of underwriting and closing on the loan takes months. These buyers are constantly told by these lending institutions that the loan will close in 60 days or less, when in reality most loans are taking 90+ days to close, if they ever do.
Our solution? We find either other buyers, other lenders, or both. We do not let workouts fail due to barriers. The debt forgiveness is too important. We can introduce Hard money loans, high interest rates – but it gets the job done, we explore networks of lenders from private investors to large lending institutions, and if all that fails, we find a new buyer. We need to focus on whats important; saving the hundreds of thousands and in some cases millions of debt that are choking the guarantors and not get caught up on interest rates, credit scores, and banks that won’t lend… With cooperation and patience from our clients we always succeed.
Recently we had a man who was doing a cash-out refinance on his home to have the cash to purchase the assets of a local small services company, saving the business opportunity and saving jobs for the employees. He had over $300,000 in equity in his home, a decent credit score, and a decent income, not to mention the fact he only needed to borrow $45,000 above what his first mortgage was, and he was initially denied credit from a local bank. Instead of giving up, we went through a group of lenders and found a private lending institution that qualified him for the refinance… Again we were promised the normal 60 days or less from this bank, and the process in total ended up taking over 100 days (another barrier to the process), but in the end the closing will occur tomorrow. The funds will then be available to save this distressed business opportunity.
Saving America one business at a time
