Featured LoanOnline Auction Purchase Using Hard Money Bridge Loan
Loan Amount: $611,000
Loan-To-Value: 75% LTV
Situation & Challenge
An investor was in contract to buy a fixer-upper REO from an online auction company.
When we’re working with online auction companies that have hosted the listing, it can be a little slow getting updated information, including seller concessions mainly due to deferred maintenance and liens on the property, back from the seller. Most of the time, REO properties, like this one, have several unpaid liens from the previous owner that need to be addressed or cleared from the title.
Solution & Result
Obtaining the loan was the easy part. The hard part was getting the title, escrow, buyer, and seller to work through the unpaid liens on title belonging to the previous owner.
Buyer and seller extended escrow an extra 10 days in order to have a clean title to close on the transaction, with our 75% hard money loan in the first position.