Posted by MichiganAl on 10/19/07 5:04pm
Msg #217411

Two things I saw today that I don't often see

Two different loans:

One borrower with an interest rate of 18% (Yikes).
Another borrower with a 519 credit score. Geez, I didn't know that was even possible.

Who says sub-prime is dead?!

Reply by LJ on 10/19/07 5:08pm
Msg #217413

I saw a score in the 500's this week also. Rate was 11%.

Reply by Charles_Ca on 10/19/07 5:18pm
Msg #217417

Gee Al, were both of those on the same loan? n/m

Reply by MichiganAl on 10/19/07 5:25pm
Msg #217419

Nope n/m

Reply by Becca_FL on 10/19/07 5:35pm
Msg #217420

I've seen more than a few 18% and even 19% loans. They have always been hard money loans with a balloon in a year. Many of the smaller builders/investors use hard money to flip refurbs or build spec homes.

Reply by Julie/MI on 10/19/07 5:49pm
Msg #217424

Re: Two things I saw today that I don't often see me too!

I'm just printing docs for $102,000 heloc (borrower already has a first) and the margin is 8.25 plus prime and it has a 5 year 6 month interest prepayment penalty.

Funny thing, it's just a mile from me and our values have dropped and I don't know how this appraisal is permitting this....

time to put on my just a notary hat.....

Reply by Charles_Ca on 10/19/07 6:03pm
Msg #217429

Perhaps they have the equity? I have no idea if homes in

you area are worth $102k or more, we kind of have a skewed view of value here in CA.

Reply by Julie/MI on 10/19/07 6:15pm
Msg #217433

Good grief!! it's one of those 125%

yikes!!!!!!!!!!!!!!!!!!!!

Reply by Charles_Ca on 10/19/07 6:18pm
Msg #217436

Re: it's one of those 125%~That's nothing but trouble IMO! n/m

Reply by Carole Breckbill on 10/22/07 2:53pm
Msg #217681

Re: Good grief!! it's one of those 125%

Why / how are these kinds of loans even allowed? (This is a serious question, not a rhetorical one.)

Reply by Joan Bergstrom on 10/19/07 8:39pm
Msg #217457

For the last 2 years it seemed as though I seldom saw anyone with a credit score above 530.

The last couple of months the only borrowers I have signed have had great credit.

I did a couple of those "hard money" with really high interest and balloon payment in a year.
These 2 borrowers were desperate but had some equity in the home but also had terrible credit scores.

Deadly combination!!

Reply by LJ on 10/19/07 8:43pm
Msg #217458

Sat I am doing a 148k loan that her income is 2,750 per month. Payments are 1,400 including escrow. Not much room to breathe for household expenses.