Looking for a Private Lender

[DCPP]

Long story short I experienced some financial hardships over the past several years and had to sell my house. I used the equity in my house to buy a house in SC for cash. I have missed payments, open debts, currently late CCs, and a middle score of low 500s on my CR. My house's value is approximately $300K and I was looking to borrow $100K of equity against the house to pay off all of my debts and start over. I have a steady income and held a job at the same company for nearly 20 years. I wish I consolidated my debt before buying a house outright but didn't. Hoping there is an asset based private lender or some other financing option out there for me as I do not qualify for traditional mortgage loans. I know that I'll get raked on interest rate but it has to be better than my current CCs, cash advances, credit lines, etc. Without the other debts, I could afford to repay the $100K + interest across 48-60 months no problem. I know private lenders would rather keep loans to 12 months, but I am willing to use my house as collateral. Seems like a win-win for them, either make high interest rate off me or if I default they gain a lot of equity in a house. Any advice or referrals would be greatly appreciated!

[MarvBear]

We are glad you found CreditBoards.

[liverichly]

The potential issue is that a lot of hard/private money lenders don't want to lend on owner occupied properties unless the funds are being used for business purposes.

 

Since you don't have any mortgage late payments you might be surprised to find that you can actually qualify for a regular mortgage, the rates won't be pretty but they'll be better than hard money terms, plus it'll likely be a 30-year fixed so you don't have to worry about a short repayment period before a balloon payment is due.

 

Another option is looking up local real estate investing groups, as there are always investors who are looking for good investments.  A friend of mine in Idaho was able to find a local real estate investor who was willing to loan them $75k against a $500k home on a 5-year loan, so you might have luck going that route too.

[DCPP]

Apologies I wasn’t clear in my initial message. The missed payments I was referring to were for mortgage. Which is why I can’t go the tradition route. They were last reported Feb 2024 so I guess I could go the traditional route in about 3/4 months. I just want to move past this debt as soon as possible though. 

[liverichly]

Oh, yes, I misunderstood and thought you had purchased the home all cash.

What MM/YY were the mortgage late payments and were they all 30-day lates or did any of them go 60, 90 or 120 day late?  

 

How much do you owe on your existing mortgage balance now?  

[DCPP]

I did purchase my new home for cash. My old house had missed mortgage payments on it (180 days reported as of Feb 2024). My current home is fully owned, $0 mortgage. Valued at $300K. My goal was to use equity from old house (which had missed payments on) to purchase a new house for cash (which I did) and then just use my salary to take care of my debts (CC, Loans, Advances, etc.). However I'm making no progress and don't qualify for a traditional cash out refi loan due to missed mortgage payments within 12 months and a low credit score. 

[liverichly]

Could be tough with a 120+ day mortgage late, but I'll check around for you.