Address: Miami, FL 33133
ARV: $6,000,000 (As-is)
Loan Amount: $1,500,000.00
Loan Structure: 12 Months Interest Only
Interest Rate: 13%
LTV 25%
Borrower Profile: Experienced Investor
Work Description: Foreclosure Bailout
Loan Purpose: Cash Out
December 13, 2024
About four months ago, a Broker reached out with the hope of helping a client facing foreclosure after some hard-fought negotiations over several weeks. The borrower had been caught up in a lawsuit but, thankfully, came through it successfully just recently. However, he’s now behind on his mortgage payments and is exploring refinancing options. After his legal victory, the borrower is set to receive a generous settlement of $3.5 million in six months. After a few months passed, the Broker contacted me again to see if I might be interested in a loan.
At that point, I decided to reconnect with the sponsor since we had already established communication. The sponsor mentioned he was waiting for some funds from his father to pay off the mortgage. Then, just last Wednesday, both the borrower and the Broker reached out to me, asking if we could finalize things by Friday since the property was set for auction on Monday. I let them know that if the title process was underway, we could make that happen, but it would depend on us inspecting the property on Thursday morning.
We went ahead with the inspection on Thursday and worked hard throughout the day to gather the survey and all necessary documents, including insurance, to ensure the closing could go smoothly. In the end, we successfully closed on Friday, providing the borrower with a mortgage of $1.5 million, which included a three-month interest reserve.
