Lender to me
The loan is crossed to the properties at 3705 Oregon and 7000 Michigan.
As I mentioned, our issue is going to be letting a property go for $60k that appraised
for $150k, given the payment history and real estate taxes. If there
is a way for him to get those issues addressed, we would be in a better
position for this to happen
From my lender to seller:
Justplaying around with your possible deal with Jay to see how
we can work it out. I don’t have loan approval, but here is what I was
working with.Jay buys 7500 Pennsylvania, 6600 Pennsylvania, and 7000 Minnesota for approximately
$294k (current appraised values). He borrows $239k from the bank, which
covers the payoffs on the three properties ($216k) plus an additional $23k (to
be used for your past due payments and real estate taxes). The two of you can
work out a structure for the $55k difference in the purchase price and bank
loan (i.e. seller financing). That addresses a potential LTV issue on my
remaining loans will be consolidated into a master note in which the
properties are cross-collateralized.
estate taxes will be brought current with the transaction and will be escrowed
· We will
need to take a second D/T on Davis to get our LTV back in line.
· Need to
find a way to make sure loans stay current going forward (i.e. lockbox rent checks?)
so this is long-term solution
Myself to my lender, day before closing.
I hope that it is understood that I did not necessarily
want the other 2 properties. I felt in order for me to take control of
my property it would help if Lou had a few off of his hands, and I also
thought it would be a good thing to do for the bank. Ive worked a lot of
hours in my property to gain the equity that it has and intended to get
a LOC against to help my business run smoothly. The way this deal is
structured i dont think ill be able to go anywhere else to do that. Do
you think you can do a LOC for me?
My lenders Response.
I understand that you are doing this transaction to make it work
for everyone. Let’s get this deal closed and let the dust settle, and then we’ll
look at a small line of credit.